RBI

January 14, 2025 12:47 PM

India’s GDP growth likely to reach 6.7% next fiscal: Crisil

India’s gross domestic product (GDP) growth is projected to improve to 6.7% in the next fiscal year (FY25), according to a Crisil Intelligence report. The report noted that a sustained decline in food inflation, combined with stable non-food inflation, could create room for a rate cut by the Reserve Bank of India (RBI) in the coming months. Headline inflation is steadily progressing toward the RBI's 4% target, as food inflation eased for the second consecutive month and non-food inflation rem...

January 8, 2025 1:23 PM

Per capita nominal GDP in FY25 to grow by ₹35,000 more than FY23: economists

Despite a slowdown in real GDP growth, India’s per capita nominal GDP is projected to rise significantly in FY25, increasing by at least ₹35,000 compared to FY23, according to economists. The first advance estimate (AE) of GDP for FY25, released by the National Statistical Office (NSO), forecasts GDP growth at 6.4 per cent. The gross value added (GVA) growth is also pegged at 6.4 per cent. Meanwhile, nominal GDP growth is estimated to remain steady, growing at 9.7 per cent in FY25, slightly...

January 2, 2025 12:27 PM

Loan against gold on the rise; RBI flags concerns over irregular practices in gold lending

The Reserve Bank of India (RBI) has reported a sharp surge in gold loans across the country, reflecting an increasing dependence on gold as collateral to meet financial needs. According to the RBI's report, gold loans saw significant growth in the period ending September 2024 compared to the same period a year earlier. "Gold loans have clocked rapid growth in the period ending September 2024 as compared to a year ago," the RBI said, underscoring the growing popularity of this financial instrume...

December 31, 2024 1:07 PM

Gross NPA ratio of India’s banks falls to 12-year low of 2.6%

India’s banking sector has witnessed continued improvement in asset quality, with the gross non-performing assets (GNPA) ratio dropping to 2.6% of total advances in September 2024, marking the lowest level in the past 12 years, according to the Reserve Bank of India’s (RBI) latest Financial Stability Report. The net NPA ratio stood at approximately 0.6%, as stated in the RBI’s December 2024 issue of the Financial Stability Report (FSR). “Fueled by declining slippages, higher write-offs...

December 30, 2024 7:19 PM

India’s economy, banks in robust health: RBI

The Indian economy and the domestic financial system are underpinned by strong macroeconomic fundamentals, healthy balance sheets of banks and non-banks with returns on assets at decadal highs, according to the RBI financial stability report released on Monday. "The Indian economy is exhibiting steady growth, underpinned by solid macroeconomic fundamentals and strong domestic growth drivers," the report states. The soundness of scheduled commercial banks (SCBs) has been bolstered by strong p...

December 26, 2024 12:01 PM

India projected to witness 6.5 per cent real GDP growth in current, next fiscal: report

India is projected to witness 6.5 per cent real GDP growth in the current and next fiscal (FY25 and FY26), according to a report on Wednesday. This aligns with expectations, given the resilient economy and strong fundamentals. The latest 'EY Economy Watch December 2024' report estimated that by combining the real GDP growth of the first two quarters of FY25, at 6.7 per cent and 5.4 per cent, respectively, with the RBI's revised growth estimates for the third and fourth quarters of FY25, at 6.8 ...

December 17, 2024 1:14 PM

Sensex, Nifty decline as trade deficit, weak exports weigh on investor sentiment

Indian stock markets opened lower on Tuesday as weak export data and a record-high trade deficit in November dampened investor sentiment. The Nifty slipped 0.3% to 24,599 points as of 09:20 a.m, while the Sensex fell 0.3% to 81,492.02. Market experts cited the widening trade deficit as the key factor affecting sentiment. Ajay Bagga, a banking and market expert, emphasized the implications of November’s trade deficit, which surged to a record $37.8 billion from $27.1 billion in October. "The ...

December 16, 2024 4:19 PM

India’s banking sector set for continued resilience amid strong economic growth: S&P Global

India’s financial sector is set for continued resilience, driven by structural improvements and strong economic growth, according to S&P Global Ratings' 2025 banking outlook. “We expect asset quality to stabilize, with weak loans projected to decline to around 3.0% of gross loans by March 2025. This is supported by healthy corporate balance sheets and improved risk management,” said Deepali Seth-Chhabria, Analyst at S&P Global Ratings. While underwriting standards for retail loan...

December 15, 2024 5:19 PM

Indian SCBs post record net profit of ₹23.50 lakh crore in FY24, reduce NPAs

Scheduled Commercial Banks (SCBs) in India have achieved a significant milestone by recording the highest-ever aggregate net profit of ₹23.50 lakh crore in FY2023-24, compared to ₹22.63 lakh crore in FY2022-23, according to the Ministry of Finance. The asset quality of SCBs has also improved remarkably, with the gross non-performing asset (NPA) ratio declining to 2.67% (₹4.75 lakh crore) in June 2024 from a peak of 11.18% (₹10.36 lakh crore) in March 2018. Public Sector Banks (PSBs)...

December 11, 2024 9:40 PM

Continuity, inclusion, and innovation will be priorities, says RBI Governor Sanjay Malhotra

Sanjay Malhotra, the newly appointed Governor of the Reserve Bank of India (RBI), outlined his vision for the central bank after assuming office on Wednesday. Malhotra emphasized that his tenure would focus on policy continuity, financial inclusion, and innovation while addressing the evolving challenges of the global economy. Reflecting on the RBI’s legacy, Malhotra acknowledged the institution's significant responsibility and the contributions it has made over the years. "It is a huge r...