Banks mostly unscathed in liquidity stress test

The RBI's stress test on 46 banks showed that all banks maintained an LCR above the 100% minimum in stress scenario 1, while two banks failed in stress scenario 2. The average LCR declined to 128.5% in September 2024 due to increased cash outflows, with public sector banks falling to 127.4% and private sector banks at 126.1%.