[ad_1]
“As the regulator and supervisor, the RBI maintains a constant vigil… on individual banks with a view to maintain financial stability,” the central bank said.
| Photo Credit: Reuters
The Reserve Bank of India (RBI) on February 3 said as per its current assessment, the banking sector remained 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 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 statement in the backdrop of media reports expressing concern about the exposures of Indian banks to a business conglomerate.
While the RBI did not name the conglomerate, the recent rout in Adani Group shares and the group’s decision to withdraw a ₹20,000 crore follow-on public offer a day after it had been fully subscribed, has triggered widespread concern about the group’s level of indebtedness and its ability to meet its debt obligations.
Also read: Adani Enterprises shares removed from Dow Jones Sustainability Indices
“The RBI remains vigilant and continues to monitor the stability of the Indian banking sector,” it said. “As the regulator and supervisor, the RBI maintains a constant vigil… on individual banks with a view to maintain financial stability,” it said. “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.
[ad_2]
Source link
