The Reserve Bank has said that no commercial bank will fail to meet the minimum capital requirement even under adverse scenarios. However, none of the banks would fall short of the minimum CRAR requirement of 9 percent even under the adverse scenarios,” the RBI said in its latest financial stability report (FSR). Just two of the 46 banks may have to dip into their capital conservation buffer (CCB) under adverse scenario 1, while four banks may require dipping into the CCB under adverse scenario 2, if stakeholders do not infuse any further capital into these banks, the central bank said in the report. Adverse scenario 1 assumes that a phased slowdown in global growth would lead to a gradual drop in domestic GDP growth and a moderate rise in domestic inflation over time leaving the RBI no leeway to ease policy rates to alleviate the situation. Adverse scenario 2 assumes that global trade uncertainties would result in a sharp dent in the domestic growth, inflation would rise beyond 6 percent and the RBI would hike the repo rate.

Source: Indian Express January 01, 2026 14:21 UTC