Back to Career News

Banking sector remains resilient and stable

February 06, 2023

Banking sector remains resilient and stable
The Reserve Bank of India (RBI) on Friday said that the banking sector remains resilient and stable, allaying fears amid growing concern about the exposures of Indian banks to the Adani Group. 

\”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 central bank said in a release. 

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 said. 

\”As per the RBI’s current assessment, the banking sector remains 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,\” it further added, Media reports on Thursday said the central bank was already assessing the banking system\’s exposure to the Adani Group which has lost $108 billion of market value since US short-seller Hindenburg Research\’s allegations of misgovernance, \’fraud\’ and price \’manipulation\’ surfaced a week ago. 

According to a recent CLSA report, Indian banks have an absolute debt exposure of close to ₹80,000 crore, amounting to about 40% of the total Adani Group debt, which is nearly ₹2 lakh crore. 

Important Links:

Recommended for you ...

Axis Bank and Mastercard Launch Premium Credit Card for Small Business Owners
Axis Bank and Mastercard Launch Premium Credit Card for Small Business Owners

September 26, 2024

Banks Report Over 15% Growth in New Credit Card Additions: RBI Data
Banks Report Over 15% Growth in New Credit Card Additions: RBI Data

September 26, 2024

National Company Law Tribunal (NCLT) Approves Merger of IDFC and IDFC First Bank
National Company Law Tribunal (NCLT) Approves Merger of IDFC and IDFC First Bank

September 25, 2024

Chat on WhatsApp