The Reserve Bank of India today said the country's banking system remains resilient and stable, amid concerns about the exposure of lenders to Adani group companies.
"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 guidelines issued by the RBI," the central bank said in a statement.
The RBI stated that it continues to be cautious and keep an eye on the soundness of the Indian banking industry.
"As per the RBI's current assessment, the banking sector remains resilient and stable," it said in the statement.
The central bank issued the comments as there had "been media reports expressing concern about the exposures of Indian banks to a business conglomerate". It did not name Adani group.
As per Moody's ratings
Moody's said its ratings for Adani Ports and Special Economic Zone (APSE.NS), Adani Green Energy (ADNA.NS) and Adani Transmission (ADAI.NS) were not changed, however it also warned the sell-off could affect financing options.
Banks report their exposure of 5 crore and above to the RBI in a database called as the Central Repository of Information on Large Credits, or CRILC. The CRILC is used by the central bank for monitoring.
Following charges of high debt levels and usage of tax havens made by US short-seller Hindenburg Research, shares of Adani group companies have lost more than half of their market value, or more than $100 billion collectively.
One of the richest individuals in the world and head of the ports-to-energy business, Gautam Adani, rejected the criticism and denied wrongdoing.
Adani vs Hindenburg
Adani Group said in a 413-page response that the Hindenburg report was motivated by "an ulterior motive" to "create a false market" in order for the US company to profit financially.
A day after it was fully subscribed, Adani Enterprises Ltd. cancelled its follow-on share offer for 20,000 crore. In light of the current market turbulence, Adani claimed that the company's board thought that "going ahead with the issue will not be morally correct."
