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Bank Exposure to Adani: RBI Says Banking Sector Remains Resilient and Stable
Moneylife Digital Team 03 February 2023
Investor Interest
Allaying concerns over Indian banks' exposure to the Adani group, the Reserve Bank of India (RBI), without naming, clarified that the banking sector remains resilient and stable as per its current assessment.
 
In a statement, RBI says, "There have been media reports expressing concern about the exposures of Indian banks to a business conglomerate. 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."
 
As the regulator and supervisor, the central bank says it 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 Rs5 crore and above, which is used for monitoring purposes.
 
"The RBI remains vigilant and continues to monitor the stability of the Indian banking sector," the banking regulator says.
 
Separately, Dinesh Khara, chairman of State Bank of India (SBI) told media persons that SBI's total exposure to the Adani group is 0.9% of its overall loan book. "SBI has an overall exposure of Rs27,000 crore in Adani group, which is 0.88% of the loan book as on 31 December 2022. The loans are against assets and businesses that are cash-generating. So, we do not see any challenge, no cause of concern for us," he says.
 
Comments
Sanjeev B
2 years ago
Is this true? It will be great if Moneylife can analyse this, instead of just publishing what the banks are saying.
Reply
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