According to the RBI’s Biannual Financial Stability

Solution

Explanation:  
The CRAR (Capital to Risk Weighted Assets Ratio) is a key measure of a bank’s 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 India’s 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 RBI’s prescribed norm of 9%.  
• The record high reflects improved risk management, capital adequacy, and the declining GNPA/NNPA ratios also highlighted in the same report.