New Delhi: The Reserve Bank of India (RBI) on Friday said that India’s banking sector is strong and stable amid concerns over the loans of banks to the troubled Adani Group. The central bank also said that it is constantly monitoring the lenders. The RBI said in a statement that it continues to monitor the banking sector, taking note of media reports raising concerns about the exposure of Indian banks to a ‘professional group’. However, the RBI did not name the Adani Group.
RBI said that as per the current assessment, the banking sector remains resilient and stable. Various parameters relating to capital adequacy, asset quality, liquidity, provisioning spread, and profitability are in good shape.
Banks remain under the supervision of the RBI
The central bank said that as a regulator and supervisor, the RBI continuously monitors the banking sector and each bank to maintain financial stability. RBI has a Central Collection of Information Related to Large Loans (CRILC) database system, where banks give information about their loans of five crores and above. This information is used for monitoring.
The statement said that the central bank remains vigilant and constantly monitors the stability of the Indian banking sector. Banks are following the guidelines of the Large Loan Framework (LEF).
SBI gave a loan of 27 thousand crores to the Adani Group
Let us tell you that the country’s largest bank State Bank of India (SBI) said on Friday that it has given a loan of about Rs 27,000 crore to Adani Group companies, which is only 0.88 percent of the overall exposure. SBI Chairman Dinesh Khara said that the bank does not perceive that Adani Group is facing any challenge in meeting its debt obligations. Along with this, he also said that SBI has not given any loan to this group in lieu of shares.
Khara said that physical assets and proper cash flow have been kept in mind while giving loans to Adani Group’s projects. Along with this, he said that the record of repaying the outstanding loan of this group has been very good.
