NEW DELHI — The Reserve Bank of India (RBI) released a bulletin on 26 September 2026 that described the country’s financial and external sectors as resilient, even as it warned of downside risks from the West Asian conflict and other global pressures. The statement, issued by the RBI’s Department of Economic Analysis, highlighted that a robust domestic economy continues to support the banking system, capital markets and foreign exchange flows.
RBI bulletin underscores resilience amid global uncertainties
The bulletin noted that the banking sector’s asset quality remained stable, with non‑performing assets (NPAs) at 1.8% of total loans, a slight decline from the 1.9% recorded in the previous quarter. Credit growth in the private sector was 5.2% year‑on‑year, while public sector banks posted a 4.5% increase. The RBI said that the overall loan‑to‑deposit ratio stayed at 78%, indicating healthy liquidity conditions.
In the external sector, the bulletin reported that foreign direct investment (FDI) inflows for the first half of 2026 were ₹1.2 trillion, up 4.5% from the same period in 2025. Remittances from overseas workers rose to ₹4.8 trillion, a 3.2% increase, and the current account surplus widened to 1.9% of GDP. The RBI said that the Indian rupee remained stable against major currencies, with a 1.1% appreciation against the US dollar over the past year.
Despite these positive indicators, the bulletin identified several external headwinds. The ongoing conflict in West Asia was cited as a potential source of volatility in global commodity prices and capital flows. The RBI also warned that rising inflation in advanced economies could pressure global interest rates, which might affect India’s borrowing costs.
“Domestic growth continues to provide a cushion for the financial system,” the bulletin said. It added that the RBI’s policy rate of 6.75% had been maintained to support inflation control while ensuring credit availability. The central bank also reiterated its readiness to intervene in the foreign exchange market if the rupee faced excessive volatility.
The bulletin’s outlook for the next quarter remained cautiously optimistic. It projected that the gross domestic product (GDP) would grow at 6.2% in 2026, supported by consumption and investment. The RBI also highlighted that the banking sector’s capital adequacy ratio (CAR) was 14.3%, comfortably above the 10% regulatory minimum.
Financial market participants reacted to the bulletin with muted movements. Equity indices closed within 0.5% of their previous levels, while the benchmark 10‑year government bond yield held steady at 6.45%. Analysts noted that the RBI’s emphasis on resilience could reinforce investor confidence amid global uncertainties.
In a related development, the RBI’s Deputy Governor for Monetary Policy, Dr. R. K. Sharma, said in a press briefing that the central bank would continue to monitor global developments closely. “We remain vigilant about external shocks that could impact the Indian economy,” he said.
The bulletin also highlighted the importance of maintaining a stable macro‑environment for the country’s export sector. Export volumes for the first half of 2026 rose 4.8% to ₹2.9 trillion, driven by growth in pharmaceuticals, information technology and renewable energy equipment.
Overall, the RBI’s bulletin paints a picture of a resilient financial ecosystem supported by a solid domestic economy, while acknowledging that global risks—particularly the West Asian conflict—could pose challenges in the coming months.
