RBI’s statement on the risk posed by Adani crisis to banks, said- Indian banking system is strong and stable

The Reserve Financial institution of India has given a press release on the information of a potential threat to the banking sector lending to the Adani group firms following the revelations of the Hindenburg report. RBI mentioned in the present day that India’s banking sector stays robust and secure amid the present turmoil. In a approach, the RBI has dominated out the potential for any influence on the nation’s banks from the Adani disaster. Nevertheless, a day earlier than this, the RBI had requested all of the banks within the nation to account for the loans given to the Adani group. However after a day itself, RBI has mentioned in a approach that every one is effectively.

In a press release issued on Friday, the RBI mentioned that there have been media reviews expressing concern in regards to the threat publicity of Bharti banks to the Eight Enterprise Group. As a regulator and supervisor, the RBI retains a relentless vigil on the banking sector and particular person banks with a view to sustaining monetary stability. As per the present evaluation of the Reserve Financial institution, the banking sector stays robust and secure.

The RBI mentioned it has a Central Repository of Data on Giant Credit Database system the place banks report their exposures of Rs 5 crore and above. In RBI this information is used for monitoring functions. With out naming Adani, the RBI mentioned that the situation of the banking system is secure on all parameters of capital adequacy, asset high quality, provision protection, liquidity and profitability well being.

Considerably, the Adani Group has been in hassle because the report of the US-based Hindenburg Research. The report claimed that Adani Group has not solely dedicated accounting fraud, however the share costs of the businesses are additionally being manipulated. The Adani group has been in hassle since this revelation. The group, which got here underneath immense stress, has additionally needed to withdraw its FPO. Even after this, the shares of group firms are repeatedly falling and Adani’s wealth has additionally decreased drastically, resulting from which Gautam Adani has been out of the listing of 20 richest folks on this planet.