New Delhi: The Reserve Bank of India said that it is constantly monitoring the condition of the banks. He said that the position of Indian banks is strong. People need not worry about the banks. Amid concerns over bank loans to the crisis-hit Adani group, the Reserve Bank of India (RBI) on Friday said India’s banking sector is strong and stable. The central bank also said that it is constantly monitoring the lenders.
In a statement, the RBI said it continues to monitor the banking sector, taking note of media reports raising concerns about exposure of Indian banks to a ‘business group’. However, the RBI did not name the Adani group. The 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. The central bank said, “As a regulator and supervisor, RBI continuously monitors the banking sector and each bank to maintain financial stability. RBI has a Central Repository of Information on Large Loans (CRILC) database system, where banks report their loans of Rs 5 crore and above. This information is used for monitoring. The statement said the central bank remains vigilant and constantly monitors the stability of the Indian banking sector. The statement further said that the banks are complying with the guidelines on the Large Loan Framework (LEF).
