The CII-IBA Financial Conditions Index for Q2 FY 2017-18 recorded a substantial change from 56.9 in the first quarter of FY2017-18 to 71.4 in the current quarter owing to expectation of improvement in the overall financial conditions in the economy. There seems to be substantial optimism across most of the sub-indices leading to improvement in the Financial Conditions Index in this quarter as compared to previous quarter. Among the sub-indices, the cost of Funds Index has recorded the highest level (77.6) followed by Funding Liquidity Index (72), External Financial Linkages Index (68.1) and Economic Activity Index (68.1).
A total of 29 banks and financial institutions participated in the Survey including 11 Public Sector Banks, 05 Private Sector Banks, 04 Foreign Banks, and 02 Cooperative Banks. Representing other financial institutions, 07 leading NBFCs participated in the Survey with a combined Total Assets of over 58 Lakh Crores.