RBI Report: Indian Banking Sector Stable, NBFC Growth Poses Financial Stability Risks
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RBI Report: Indian Banking Sector Stable, NBFC Growth Poses Financial Stability Risks

The Reserve Bank of India's 2024-25 report indicates a resilient banking sector with strong balance sheets and improving asset quality. However, the report also highlights growing risks associated with Non-Banking Financial Companies (NBFCs). Their increasing role and deepening links with banks, through borrowings and asset securitization, could pose a threat to overall financial stability, especially as NBFC credit growth outpaces that of banks.

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