Ever since the Hindenburh Research report on Adani's alleged accounting fraud triggered a stock market rout, the spotlight has been on SEBI and RBI to take stock of the situation. Along with demands for an investigation into the fiasco, questions have also been raised about how a loss of $120 billion from the Adani Group's market value, could hit banks which have provided loans for its growth. Days after asking for details from lenders about their respective exposure to Adani Group firms, India's banking regulator has allayed fears in the market.
The Reserve Bank of India has echoed the Finance Minister of India, to say that the banking sector remains resilient and stable. The statement follows Finance Minister Nirmala Sitharaman's reassurance about Indian markets being well regulated. RBI cited the Central Repository of Information on Large Credits, to reiterate that it keeps a constant vigil on banks since an exposure beyond Rs 5 crore is recorded in the database.
According to the regulator's observations, asset quality, capital adequacy, liquidity and provision coverage, are all healthy. In its statement, RBI only referred to Adani as a certain business conglomerate.
