| Foreword |
| List of Select Abbreviations |
| Overview |
| Chapter I : Macro-Financial Risks |
| Introduction |
| Global Backdrop |
| Macroeconomic Developments and Outlook |
| Capital Flows and Exchange Rate Volatility |
| COVID-19 and Bank Capital |
| Commodity Market Spillovers |
| Domestic Macro-Financial Developments |
| Recent Macroeconomic Developments |
| Corporate Sector |
| Banking System – Liquidity Profile |
| Banking System – Wholesale Credit |
| Consumer Credit |
| Bank Credit to MSME Sector |
| Banking Stability Indicator |
| Developments in Non-bank Financial Intermediation |
| Housing Market |
| Systemic Risk Survey |
| Chapter II : Financial Institutions: Soundness and Resilience |
| Introduction |
| Scheduled Commercial Banks |
| Asset Quality and Capital Adequacy |
| Sectoral Asset Quality |
| Credit Quality of Large Borrowers |
| Resilience – Macro Stress Tests |
| Sensitivity Analysis |
| Bottom-up Stress Tests – Derivatives Portfolio |
| Scheduled Urban Cooperative Banks |
| Stress Tests – Credit risk |
| Stress Tests – Liquidity Risk |
| Non-banking Financial Companies |
| Stress Tests |
| Interconnectedness |
| Network of the Financial System |
| Contagion Analysis |
| Chapter III : Regulatory Initiatives in the Financial Sector |
| Introduction |
| Global Developments |
| Capital |
| Liquidity |
| Expected Credit Loss (ECL) provisioning |
| Operational Risk in Banks |
| COVID-19 and the Insurance Sector |
| Other International Regulatory Developments in the Banking Sector |
| Holistic Review of the Market Turmoil in March 2020 |
| Global Monitoring Report on Non-bank Financial Intermediation |
| Climate Change Risk |
| Risks from Outsourcing and Third-party Relationships |
| Development of Capital Markets in Emerging Markets |
| Domestic Developments |
| Initiatives from Regulators/Authorities |
| Credit Related Measures |
| Support for the NBFC sector |
| Insurance Sector |
| Customer Protection |
| Resolution and Recovery |
| Other Regulatory Developments |
| Bilateral Netting of Contracts |
| Launch of RTGS 24x7 |
| Remittances through Indian Payment Systems |
| Digital Transactions – Streamlining Quick Response (QR) Code Infrastructure |
| Oversight Framework for Financial Market Infrastructures (FMIs) and Retail Payment Systems (RPS) |
| LIBOR Transition in the Indian Context |
| Cyber Security |
| Risk Mitigation Measures |
| Deposit Insurance |
| Corporate Insolvency Resolution Process |
| Mutual Funds |
| Capital Mobilisation - Equity and Corporate Bonds |
| Credit Ratings |
| Commodity Derivatives Market |
| Insurance |
| Pension Funds |
| International Financial Services Centres Authority |
| Annex 1: Systemic Risk Survey |
| Annex 2: Methodologies |
| Annex 3: Important Regulatory Measures |
| LIST OF BOXES |
| 1.1 Reviving and Restructuring the Corporate Sector |
| 2.1 Stress testing in Pandemic Times: Some Country Experiences |
| LIST OF CHARTS |
| 1.1 GDP Growth in Major Economies |
| 1.2 Growth Projections for Key Economies |
| 1.3 Policy Response to COVID-19 |
| 1.4 Balance sheets of the US Federal Reserve (Fed) and European Central Bank (proportion to their respective GDPs) |
| 1.5 Financial Stress Index |
| 1.6 North American Investment Grade (IG) CDS |
| 1.7 North American High Yield (HY) CDS |
| 1.8 Movement in Key Interest Rates in the US and Eurozone |
| 1.9 Growth in Money Market Mutual Fund Assets in the US and Eurozone |
| 1.10 US: LIBOR- OIS Spread (3-month tenor) |
| 1.11 US: OIS-T-Bill Spread (3-month tenor) |
| 1.12 12-month Forward Earnings Per Share (EPS) Estimates – Major Global Equity Indices |
| 1.13 Price Earnings Multiples of Major Global Indices |
| 1.14 EMs’ Daily Flows (28-day moving average) |
| 1.15 Net Issuance of EM Bonds Abroad |
| 1.16 Emerging Market Bond Returns (Annualised) |
| 1.17 Exchange Rates in AEs and EMs |
| 1.18 US and European Contingent Convertible Additional Tier-1 (AT-1) Index |
| 1.19 Cross-Country Aggregate Loans |
| 1.20 Movements in Aggregate Loan Loss Reserves |
| 1.21 Aggregate CET-1 Ratios |
| 1.22 Brent Crude Oil Spot and Futures |
| 1.23 Movement in Commodity Indices |
| 1.24 Food Price Index |
| 1.25 Net Borrowings (Centre and State Governments) and 10-year Benchmark G-sec Yield |
| 1.26 India’s Merchandise Trade Growth |
| 1.27 Policy Rate and Spread over Market Repo |
| 1.28 Spreads of Term – Risk-free Rate and Unsecured Rate over Operating Overnight Rate |
| 1.29 Slope (short-term) of the Sovereign Yield Curve: 3-month to 3-year |
| 1.30 Slope (3y-7y) of OIS and G-Sec Curves |
| 1.31 Foreign Portfolio Investment Flows |
| 1.32 Trend in Foreign and Domestic Investments in Equity Cash Segment |
| 1.33 Exchange Rate Movements and Realised Volatility |
| 1.34 1-year and 3-year MIFOR - OIS Spread |
| 1.35 Ratio of Interest to PBIDTA and OA for Non-financial Companies (Ownership-wise) |
| 1.36 Ratio of Interest to PBIDTA and OA for Non-PSU Non-financial Companies (Size-wise) |
| 1.37 Ratio of Interest to PBIDTA and OA for Non-PSU Non-financial Companies (Rating-wise) |
| 1.38 Balance sheet Growth and Banking Sector Exposure - Listed Non-PSU Non-Financial Companies |
| 1.39 Long-term Ratings and Number of Obligors |
| 1.40 Credit by SCBs – Annual Growth (y-o-y) by Type |
| 1.41 Market Capitalisation of CPSEs and Credit Offtake |
| 1.42 Exposure Distribution of Non-PSU Non-Financial Obligors |
| 1.43 SMA Distribution of Wholesale Non-PSU Non-financial Obligors Portfolio between August and November, 2020 |
| 1.44 Approval Rates by Lender Category |
| 1.45 Inquiry Volumes by Risk Tier |
| 1.46 Banking Stability Map |
| 1.47 Movements in Rebased Net Asset Values of three Schemes |
| 1.48 Average Assets under Management of Debt Schemes and Average Daily Outstanding System Liquidity |
| 1.49 Returns on Liquid fund Index |
| 1.50 Investment in G-Sec/T-Bills/ CBLO and spread products movement |
| 1.51 Issuances of Commercial Paper and Non-Convertible Debentures - Non-PSU Obligors |
| 1.52 Outstanding Commercial Papers and Non-Convertible Debentures - Non-PSU Obligors |
| 1.53 CP Issuances – Non-PSU Non-financial Obligors – Rating-wise |
| 1.54 NCD Issuances – Non-PSU Non-financial Obligors – Rating-wise |
| 1.55 Short-term Money Market Rates |
| 1.56 House Launches and Sales |
| 1.57 Unsold Inventory and Inventory Overhang |
| 1.58 Price Growth Trends in Key Housing Markets |
| 2.1 Select Performance Indicators |
| 2.2 Select Asset Quality Indicators |
| 2.3 Sectoral Asset Quality Indicators |
| 2.4 Select Asset Quality Indicators of Large Borrowers |
| 2.5 Macroeconomic Scenario Assumptions for H2:FY20-21 and H1:FY21-22 |
| 2.6 Projection of SCBs’ GNPA Ratios |
| 2.7 CRAR Projections |
| 2.8 Projection of CET 1 Capital Ratio |
| 2.9 Credit Risk - Shocks and Outcomes |
| 2.10 Credit Concentration Risk: Individual Borrowers – Exposure |
| 2.11 Credit Concentration Risk: Group Borrowers – Exposure |
| 2.12 Credit Concentration Risk: Individual Borrowers – Stressed Advances |
| 2.13 Trading Book Portfolio: Bank Group-wise |
| 2.14 Yield Curves and Shift in Yields Across Tenors |
| 2.15 HTM Portfolio – Disaggregated by Type |
| 2.16 Equity Price Risk |
| 2.17 Liquidity Risk – Shocks and Outcomes |
| 2.18 Mark-to market (MTM) of Total Derivatives Portfolio – Select banks, September 2020 |
| 2.19 Impact of Shocks on Derivatives Portfolio of Select Banks |
| 2.20 Credit Risk in NBFCs – System Level |
| 2.21 Bilateral Exposures between Entities in the Financial System |
| 2.22 Network Plot of the Financial System, September 2020 |
| 2.23 Net Receivables (+ve) / Payables (-ve) by Institution |
| 2.24 Inter-bank Market |
| 2.25 Different Bank Groups in the Inter-bank Market, September 2020 |
| 2.26 Composition of Fund based Inter-bank Market |
| 2.27 Network Structure of the Indian Banking System (SCBs+ SUCBs) – September 2020 |
| 2.28 Connectivity Statistics of the Banking System (SCBs) |
| 2.29 Gross Receivables of AMC-MFs from the Financial System |
| 2.30 Gross Receivables of Insurance Companies from the Financial System |
| 2.31 Gross Payables of AIFIs to the Financial System |
| 2.32 Gross Payables of NBFCs to the Financial System |
| 2.33 Gross Payables of HFCs to the Financial System |
| 2.34 Contagion Impact of Macroeconomic Shocks (Solvency Contagion) |
| 3.1 Trends in Resource Mobilisation by Mutual Funds and AUM |
| 3.2 Capital Mobilisation in the Primary Market |
| 3.3 Capital Mobilisation through Equity and Debt Issues |
| 3.4 Debt Issues of Listed Companies in terms of Rating Action |
| 3.5 Distribution of Rating Downgrades- Sector wise |
| 3.6 Movement of Global Commodity Price Indices |
| 3.7 Domestic and International Commodity Futures Indices |
| 3.8 Select Sectoral Indices |
| 3.9 Commodity Derivatives Turnover at Exchanges (Futures and Options) |
| 3.10 New Life Insurance Business Premiums - Growth (m-o-m) |
| LIST OF TABLES |
| 1.1 Growth Projections for 2020 and 2021 |
| 1.2 Fiscal Deficit as per cent of GDP – Key Regions |
| 1.3 Fiscal Deficit as per cent of GDP of Low Income Regions |
| 1.4 LCR Profiles across Bank Groups |
| 1.5 Growth in Wholesale Credit |
| 1.6 Disaggregated Wholesale Credit Growth based on Ownership |
| 1.7 Disaggregated Wholesale Credit Growth in Non-PSU obligors |
| 1.8 SMA Transition Matrix for Wholesale Portfolio of a Constant Sample of Non-PSU Non-financial Obligors between August and September 2020 |
| 1.9 SMA Transition Matrix for Wholesale Portfolio of a Constant Sample of Non-PSU Non-financial Obligors between August and November 2020 |
| 1.10 Sectoral Credit Growth |
| 1.11 Growth in Inquiry volume |
| 1.12 Growth in Consumer Credit (y-o-y, per cent) |
| 1.13 Volume of Inquiries for MSME Credit (y-o-y, per cent) |
| 1.14 Activity in MSME sector (y-o-y, per cent) |
| 1.15 Trends in Resource Mobilisation by Mutual Funds |
| 1.16 Issuances and Near-term Maturities of CPs and NCDs of Non-PSU Non-financial Obligors |
| 2.1 Sector-wise New Loans by SCBs |
| 2.2 Decline in System Level CRAR |
| 2.3 Tenor-wise PV01 Distribution of AFS Portfolio |
| 2.4 OOI - Profit/(loss) on Securities Trading |
| 2.5 Tenor-wise PV01 Distribution of HFT portfolio |
| 2.6 Interest Rate Risk – Bank-groups - Shocks and Impacts |
| 2.7 Contagion losses due to Bank failure – September 2020 |
| 2.8 Contagion Losses due to NBFC Failure – September 2020 |
| 2.9 Contagion Losses due to HFC Failure – September 2020 |
| 3.1 LIBOR Linked Exposures of Various Financial Contracts in India |
| 3.2 Insured Deposits of Cooperative Banks |
| 3.3 Corporate Insolvency Resolution Process |
| 3.4 Sectoral Distribution of CIRPs as on September 30, 2020 |
| 3.5 Outcome of CIRPs initiated Stakeholder-wise, as on September 30, 2020 |
| 3.6 CIRPs Ending with Orders for Liquidation till September 30, 2020 |
| 3.7 SIPs in 2020-21 |
| 3.8 Segment-wise Turnover in Commodity Derivatives (Futures and Options) |
| 3.9 Growth in Health Insurance sector |
| 3.10 Business in COVID specific Insurance Products |
| 3.11 Subscribers and AUM: NPS and APY |