The Reserve Bank of India (RBI) has said that as a regulator and supervisor, it maintains a constant vigil on the banking sector and on individual banks to maintain financial stability. The RBI statement has come amidst media reports expressing concern about the exposures of Indian banks to a business conglomerate.
The RBI said, as per its current assessment, the banking sector remains resilient and stable. It added that various parameters relating to capital adequacy, asset quality, liquidity, provision coverage and profitability are healthy. The RBI further added that banks are also in compliance with the Large Exposure Framework guidelines issued by it.
The RBI has a Central Repository of Information on Large Credits database system used for monitoring purposes, where the banks report their exposure of five crore rupees and above. The RBI said it remains vigilant and continues to monitor the stability of the Indian banking sector. (AIR NEWS)