The Reserve Bank of India (RBI) on February 3 stated as per its present evaluation, the banking sector remained resilient and secure.
“Various parameters relating to capital adequacy, asset quality, liquidity, provision coverage and profitability are healthy,” the central financial institution stated in a press release on the well being of Indian banking sector. “Banks are also in compliance with the Large Exposure Framework (LEF) guidelines issued by the RBI,” it added, explaining that it was making the assertion within the backdrop of media experiences expressing concern concerning the exposures of Indian banks to a enterprise conglomerate.
While the RBI didn’t identify the conglomerate, the latest rout in Adani Group shares and the group’s choice to withdraw a ₹20,000 crore follow-on public supply a day after it had been totally subscribed, has triggered widespread concern concerning the group’s degree of indebtedness and its skill to satisfy its debt obligations.
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“The RBI remains vigilant and continues to monitor the stability of the Indian banking sector,” it stated. “As the regulator and supervisor, the RBI maintains a constant vigil… on individual banks with a view to maintain financial stability,” it stated. “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,” it added.