In the global economy, where financial conditions are tight and volatility in financial markets is on the rise, the Indian economy is confronting strong global headwinds.
Sound macroeconomic fundamentals and
healthy financial and non-financial sector balance sheets are providing strength and resilience and
engendering financial system stability. Buoyant demand for bank credit and early signs of a revival in the
investment cycle are benefiting from improved asset quality, return to profitability and strong capital and
liquidity buffers of banks.
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