The Reserve Bank of India (RBI) on Friday said that it keeps a constant vigil on the banking sector and on individual banks to maintain financial stability.
The RBI statement comes amid media reports expressing concern about the exposures of Indian banks to the Adani Group. As per the RBI’s current assessment, the banking sector remains resilient and stable, the central bank said.
“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,” said the RBI.
“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, said the central bank.
RBI statement on the health of Indian Banking sectorhttps://t.co/LnCLD63QBj — ReserveBankOfIndia (@RBI) February 3, 2023
The RBI assured as per its current assessment, the banking sector remained 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,” added the central bank.
The RBI said it remained vigilant and continued to monitor the stability of the Indian banking sector.
The reserve bank said it had 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.
This came even as Finance Minister Nirmala Sitharaman, in her first reaction to the free fall stocks of Adani Group’s companies, said the country’s market was “well regulated”.