No need for tension, banking system strong – RBI amid Adani ruckus

Newztezz Online February 03, 2023 Business,

The Reserve Bank of India (RBI) has given a big statement on the issue of Adani Group. RBI says that the country's banking sector is strong and stable.

The Reserve Bank of India (RBI) has given a big statement on the issue of Adani Group. RBI says that the country's banking sector is strong and stable. The central bank said that the condition of the banking system is stable on the parameters of capital adequacy, asset quality, liquidity, provision coverage and profitability health. He said that the bank also follows the guidelines of the Large Exposure Framework (LEF).

Continuous monitoring of the stability of the sector: RBI

RBI said that the central bank remains cautious and is monitoring the stability of the sector. Let us tell you that this is the first time that the country's central bank has said anything on the issue of Adani Group. Earlier he did not talk about Adani Group and its current crisis. But today the press release of RBI is directly pointing towards the case of Adani Group.

In the beginning of its press release, RBI said that there have been media reports regarding the exposure of a business group of Indian banks. He said that as a regulator and supervisor, the RBI continues to maintain a cautious approach on the banking sector and banks. According to him, his goal is to maintain financial stability.

Large credit database with central bank: RBI

The central bank said in its press release that the RBI has a Central Repository of Information on Large Credit (CRILC) database system. In this, banks give information about their exposure of more than Rs 5 crore, which is used for monitoring.

Earlier, RBI had sought answers from all the banks in the Adani case. Adani Group had asked the banks that how much loan they have given to Adani Group companies and what is its status. At the same time, Adani Group had canceled the FPO of Adani Enterprises. Adani Group Chairman Gautam Adani Group himself had to come forward to withdraw the Rs 20,000 crore FPO of Adani Enter

Giving the reason for this, Gautam Adani had said that in view of the volatility in the market, the board felt that it would not be ethically correct for them to go ahead with the FPO.prises.