Seven listed firms of Adani Group have lost about half their market value – or more than USD 100 billion combined – since US-based investor research firm Hindenburg Research last week accused the conglomerate of “brazen stock manipulation and accounting fraud”Allaying concerns over the exposure of lenders to the embattled Adani Group, the Reserve Bank of India on Friday stated that the country’s banking system remains resilient and stable.
“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.
“As the regulator and supervisor, the RBI maintains a constant vigil on the banking sector and on individual banks with a view to maintain financial stability. The RBI has a Central Repository of Information on Large Credits (CRILC) database system where the banks report their exposure of Rs 5 crore and above which is used for monitoring purposes,” it said.
Without naming the Adani Group, the RBI said it was issuing the comments as there had “been media reports expressing concern about the exposures of Indian banks to a business conglomerate”.
Seven listed firms of Adani Group have lost about half their market value – or more than USD 100 billion combined – since US-based investor research firm Hindenburg Research last week accused the Gautam Adani-led conglomerate of “brazen stock manipulation and accounting fraud scheme over the course of decades”.
Meanwhile, the country’s largest lender SBI said its overall exposure to the Adani Group is at 0.88 per cent of the book or around Rs 27,000 crore. SBI chairman Dinesh Khara said the bank does not envisage the conglomerate facing any challenge to service its debt obligations and stressed that SBI has not given any loans against shares to the group