“As the regulator and supervisor, the RBI maintains a constant vigil… on individual banks with a view to maintain financial stability,” the central financial institution mentioned.
| Photo Credit: Reuters
The Reserve Bank of India (RBI) on February 3 mentioned as per its present evaluation, the banking sector remained resilient and stable.
“Various parameters relating to capital adequacy, asset quality, liquidity, provision coverage and profitability are healthy,” the central financial institution mentioned 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 reviews expressing concern in regards to the exposures of Indian banks to a enterprise conglomerate.
While the RBI didn’t identify the conglomerate, the current rout in Adani Group shares and the group’s determination to withdraw a ₹20,000 crore follow-on public provide a day after it had been totally subscribed, has triggered widespread concern in regards to the group’s degree of indebtedness and its capability to fulfill its debt obligations.
Also learn: Adani Enterprises shares faraway from Dow Jones Sustainability Indices
“The RBI remains vigilant and continues to monitor the stability of the Indian banking sector,” it mentioned. “As the regulator and supervisor, the RBI maintains a constant vigil… on individual banks with a view to maintain financial stability,” it mentioned. “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.
