While replying to a query in the Lok Sabha on Monday, Union Minister of State for Finance Pankaj Chaudhary said that the Reserve Bank of India (RBI) conducts regular stress testing in the form of single-factor sensitivity analysis for Urban Co-operative Banks (UCBs). He added that the results of these stress tests are published in the RBI’s half-yearly Financial Stability Report (FSR).
The Minister informed the House that similar stress testing is also undertaken for Non-Banking Financial Companies (NBFCs), with the outcomes reported in the FSR.
He further stated that the divergence between credit and deposit growth and its impact on overall financial stability is regularly assessed by the government and the RBI, and the assessment is published at half-yearly intervals in the Financial Stability Report. As per RBI, credit growth of 16–18 per cent is considered sustainable, and current growth rates are within this range.
The RBI’s latest stress test conducted in December 2025 indicated resilience in the Indian banking system, supported by strong capital, liquidity, and asset quality indicators.