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As Adani Group stocks bleed, RBI says 'banking sector remains resilient and stable'

Says it remains vigilant and continues to monitor stability of the sector

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Amid concerns over the exposure of banks to Adani group companies, which have taken a beating in the markets after US-based Hindenburg Research made a litany of allegations in a report, the RBI issued a clarification saying "the banking sector remains resilient and stable."

There have been media reports expressing concern about the exposures of Indian banks to a business conglomerate, the RBI said in a statement.

"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 ₹5 crore and above which is used for monitoring purposes."

The regulator said as per its current assessment, the banking sector remains resilient and stable.

"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 statement read.

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

Hindenburg Research has accused Adani Group of fraudulent transactions and share price manipulation. The charges have been denied by the group, saying it complies with all laws and disclosure requirements.

The 10 listed Adani Group firms have faced a combined erosion of over Rs 8.76 lakh crore in the past 6 days.

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