“As a regulator and supervisor, the RBI continuously monitors individual banks with a view to maintaining financial stability,” the central bank said. , Photo Credit: Reuters
The Reserve Bank of India (RBI) on February 3 said that 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,” the central bank said in a statement on the health of the Indian banking sector. Stating that “the banks are also in compliance with the Large Exposures Framework (LEF) guidelines issued by RBI,” it was making the statement in the backdrop of media reports expressing concern about the exposure of Indian banks to a trading group. Was.
While the RBI did not name the group, the recent fall in Adani Group’s shares and the group’s decision to withdraw a follow-on public offer of ₹20,000 crore a day after it was fully subscribed raised concerns about the group’s level of indebtedness. has given rise to widespread concern. and its ability to meet its debt obligations.
Read this also | Adani Enterprises shares removed from Dow Jones Sustainability Index
“RBI remains vigilant and continues to monitor the stability of the Indian banking sector,” it said. “As a regulator and supervisor, the RBI constantly monitors individual banks with a view to maintaining financial stability,” it said. RBI has a Central Repository of Information on Large Credit (CRILC) database system where banks report their exposure of 5 crore and above, which is used for monitoring purposes.