Adani crisis: Banking sector resilient and stable, says RBI

Mumbai: Amid concerns over banks’ exposure to the embattled Adani Group, the Reserve Bank on Friday said India’s banking sector is resilient and stable, and the central bank maintains a constant vigil on the lenders.

Responding to media reports expressing concern about the exposure of Indian banks to a ”business conglomerate”, the Reserve Bank said in a statement that it is constantly monitoring the banking sector.

However, the RBI did not name the Adani Group.

As per the current assessment, the RBI said, ”the banking sector remains resilient and stable. Various parameters relating to capital adequacy, asset quality, liquidity, provision coverage and profitability are healthy.” ”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,” the central bank said.

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

It further said that banks are also in compliance with the Large Exposure Framework (LEF) guidelines issued by the RBI.