NBFCs, urban co-operative banks continue to show improvements, says RBI Governor

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Non-banking financial companies (NBFCs) and urban co-operative banks continue to show improvement, RBI Governor Shaktikanta Das said on August 8 sharing the outcome of the bi-monthly MPC meeting.

Das, in his statement said that the NBFCs remain healthy, with CRAR at 26.6 percent, gross non-performing assets (GNPA) ratio at 4 percent and return on assets (RoA) at 3.3 percent at end-March 2024. "Excluding NBFCs under resolution, the GNPA ratio for NBFCs is below 3 per cent. The capital
position of UCBs has been continuously improving in the post-pandemic period, CRAR was 17.5 percent as on March 31, 2024," Das said.

The monetary policy committee of the central bank decided to keep the repo rate unchanged at 6.5 percent by a majority of 4:2, governor Shaktikanta Das said.Follow our live blog, for the latest on the RBI policy

The MPC also decided to remain focused on withdrawal of accommodation stance by the same majority 4:2.

Das said the domestic economic activity continues to remain resilient, with real GDP growth at 7.2 percent for 2024-25.The other rates namely, standing deposit facility (SDF) rate also remained unchanged at 6.25 percent and marginal standing facility at 6.7 percent. The bank rate was also maintained at 6.7 percent. “There is a good amount of convergence in RBI policy and market expectation,” Das said.