RBI flags 4.1% GNPA risk by Mar 2028, banks ready
The Reserve Bank of India (RBI) says banks could see their bad loans (gross nonperforming assets, GNPA) climb to 4.1% by March 2028 if things get rough, such as global conflicts, high prices, and slow economic growth.
Still, RBI's latest Financial Stability Report reassures that banks are generally well-prepared to handle these bumps.
Banks risk capital shortfalls, NBFCs resilient
Even in a normal scenario, bad loans might tick up a bit to 1.9%.
In tougher times, it could reach up to 4.1%, with one bank in the first adverse scenario and two banks in the more severe scenario likely falling short of key capital safety levels.
The report also checked on nonbank finance companies (NBFCs), where a few might face pressure under stress, but overall the sector remains resilient.
So while there are challenges ahead, India's financial system looks steady for now.