Mumbai (Maharashtra), 3rd Feb 2023: The Reserve Bank of India (RBI) has reportedly asked large banks to provide information on their exposure to the Adani Group. According to sources, the central bank has been seeking details on the lending and borrowing activities of the banks with the Adani Group, which is one of India’s largest conglomerate with interests ranging from ports, agribusiness, and energy.
The move by the RBI is said to be part of a routine exercise aimed at monitoring the financial health of the country’s largest conglomerates and assessing their potential impact on the banking sector. The central bank is reportedly concerned about the high levels of debt in the Adani Group, which has recently expanded into several new areas such as data centers, education, and health care.
Banks are expected to provide details on their exposure to the Adani Group in the form of loans, bonds, and other forms of credit. The information will help the RBI to assess the risk of lending to the group and determine if additional measures are needed to mitigate any potential losses.
The Adani Group has been in the news recently for its massive expansion plans, including the development of India’s largest private port and a multi-billion-dollar renewable energy project. The group has also been making headlines for its controversial involvement in various projects, including the development of a coal mine in Australia and the construction of a new airport in Mumbai.
The request from the RBI has come at a time when the country’s banking sector is facing a rising number of bad loans and mounting pressure to clean up its balance sheets. The central bank’s move to seek information on banks’ exposure to the Adani Group is seen as a step towards improving transparency in the sector and reducing the risk of loan defaults.
In conclusion, the RBI’s request for information on banks’ exposure to the Adani Group is expected to provide insights into the financial health of one of India’s largest conglomerates and help the central bank assess the potential impact on the country’s banking sector.