RBI stress test flags rising NBFC stress, capital buffers to thin by FY27

India's central bank warns of rising bad loans and shrinking capital for non-banking lenders. Stressed assets could hit 2.8% by March 2027, with capital buffers dipping to 20.8% under normal conditions. Worryingly, several NBFCs might breach minimum capital requirements, especially under economic stress, highlighting ongoing regulatory focus on the sector's resilience.