RBI Says Banking Sector Resilient And Stable Amid Adani Stocks Rout

RBI Says 'Resilient and Stable Banking Sector' Amid Adani Stock Drop

RBI says it remains cautious and continues to monitor stability of Indian banking industry

New Delhi:

The Reserve Bank of India said today that the country’s banking system remains resilient and stable, amid concerns about lenders’ exposure to Adani group companies.

“Various parameters related to capital adequacy, asset quality, liquidity, scope of supply and profitability are all healthy. Banks also adhere to RBI’s Large Exposure Framework guidelines. operating,” the central bank said in a statement.

The RBI said it remains cautious and continues to monitor the stability of the Indian banking sector.

“According to the RBI’s current assessment, the banking sector remains resilient and stable,” it said in the statement.

The central bank issued the comments because there had been “media reports expressing concern about Indian banks’ exposure to a business consortium”.

It does not name the group Adani.

The RBI maintains a database called the Central Repository of Major Credits, or CRILC, where banks report their exposure of Rs 5 crore or more. Central banks use CRILC for supervisory purposes.

Shares of Adani group companies have lost more than half of their market value, or more than $100 billion combined, after US short-seller Hindenburg Research made accusations of high debt levels and the use of tax havens.

The port energy group, led by Gautam Adani, one of the world’s richest men, has denied the criticism and denied wrongdoing. In a 413-page response, the Adani team said Hindenburg’s report was motivated by “an ulterior motive” to “create a fake market” to allow the US company to make a financial profit.

Adani Enterprises Ltd has also stopped the next sale of shares worth Rs 20,000 a day after being fully registered. Adani said the company’s board felt that it was “ethical not to continue to address the issue” amid market turmoil.

Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, a Company of the Adani Group.


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