New Delhi, May 29 -- The ongoing Iran war that has resulted in high crude oil prices poses risk to growth and inflation for India even as the growth outlook remains positive, Reserve Bank of India said today.

RBI in its annual report for 2025-26 said even though the Indian banking system is expected to remain resilient, lingering geopolitical tensions and supply chain disruptions may pose near-term risks to corporate earnings and the performance of loan portfolios, the RBI data said.

The West Asia conflict and the attendant risks of elevated energy prices, supply chain disruptions, financial market volatility, uncertainty surrounding global trade policies and weather-related disruptions could pose headwinds to growth and inflation in the ...