Indian Financial System Found to be Broadly Robust
The Government of India, in consultation with the Reserve Bank, in September 2006 constituted the Committee on Financial Sector Assessment (CFSA) to undertake a comprehensive self- assessment of India’s financial sector (based on the principles of the FSAP of IMF & World Bank). The CFSA recently assessed financial stability and also compliance with all financial standards and codes so that a compact roadmap could evolve with a medium-term perspective for the entire financial sector. From this study, the Indian commercial banking system has shown itself to be sound. This is important because commercial banks are the dominant institutions with linkages to other segments in the Indian financial system, accounting for around 60 per cent of its total assets.

Apart from commercial banks the report also analyses NBFCs, HFCs, the insurance sector, as well as equity and debt markets. It also looks at the financial infrastructure, including regulatory and legal infrastructure.
Use the following link to read the entire report:
Reserve Bank of India