The Reserve Bank of India's stress tests project a rise in NBFC gross non-performing assets from 2.3% to 2.9% by September 2026 under a baseline scenario. The sector's capital adequacy ratio is expected to decrease but remain above the regulatory minimum. However, the RBI noted that eight NBFCs might fall below the minimum capital threshold even in the baseline scenario, with eleven potentially failing under severe stress. Liquidity stress tests also indicated rising pressure for a few NBFCs.