Question

According to the RBI’s Biannual Financial Stability Report (July 2025), what was the Capital to Risk Weighted Assets Ratio (CRA

Q: Answer-According to the RBI’s Biannual Financial Stability Report (July 2025), what was the Capital to Risk...

Explanation The CRAR Capital to Risk Weighted Assets Ratio is a key measure of a banks financial stability, indicating how well a bank is capitalized to handle potential risks and shocks. According to the Financial Stability Report FSR of July 2025, the CRAR of SCBs rose to a record high of 17.3 till 2025 . This is a significant achievement as it represents the resilience of Indias banking system. A higher CRAR implies stronger capacity to absorb financial stress. This level is well above the Basel III global minimum requirement of 8 and even RBIs prescribed norm of 9. The record high reflects improved risk management, capital adequacy, and the declining GNPANNPA ratios also highlighted in the same report.