New Delhi: With questions being raised on public sector banks’ exposure to the under-pressure Adani Group, Reserve Bank of India (RBI) clarified on Friday that the country’s banking sector remains ‘resilient and stable’ as per its assessment.
“There have been media reports expressing concern about the exposures of Indian banks to a business conglomerate. As the regulator and supervisor, the RBI maintains a constant vigil on the banking sector and on individual banks with a view to maintain financial stability. The RBI has a Central Repository of Information on Large Credits (CRILC) database system where the banks report their exposure of Rs 5 crore and above which is used for monitoring purposes,” RBI said in a statement.
A day earlier, Reuters had reported that RBI has asked public sector banks for details of their exposure to Adani Group companies, which have experienced a massive rout since a scathing report against the Gautam Adani-headed conglomerate by US short-seller Hindenburg Research.
“Various parameters relating to capital adequacy, asset quality, liquidity, provision coverage and profitability are healthy. Banks are also in compliance with the Large Exposure Framework (LEF) guidelines issued by the RBI. The RBI remains vigilant and continues to monitor the stability of the Indian banking sector,” the country’s banking regulator said.
Also Read: Adani Crisis: One Instance Doesn’t Indicate Governance Of Indian Markets, Says FM
Earlier today, State Bank of India (SBI) chairman Dinesh Khara said that the bank’s total exposure to Adani Group is 0.9% of the overall loan book, which amounts to around Rs 27,000 crore. He added that SBI has no concern vis-à-vis its exposure to Adani Group as of now.
Application for any further financing would be “evaluated on its own merit,” he added, Business Today reported.
Bank of Baroda also assured that it has “absolutely no concern” about its exposure to Adani Group, Reuters quoted a bank executive as saying.
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