Banks clear RBI stress test, but NPAs tick up in tough scenarios

RBI's macro stress tests on 46 scheduled commercial banks show the system remains resilient, with core capital ratios projected to stay above regulatory minimums even under severe adverse scenarios, though GNPAs could rise from 1.8% to 4.1%. For 174 NBFCs, the outlook is weaker — 7 entities may breach the 15% minimum CRAR threshold under baseline conditions, doubling to 15 under stress, while sector CRAR could dip from 22.3% to 20%. Aggregate LCR for SCBs is seen falling from 123.7% to 110.8% under severe stress, with 3 banks potentially missing the LCR floor.