The Reserve Bank of India indicated on Friday that the country’s banking system is resilient and stable, assuaging fears over lenders’ exposure to the beleaguered Adani Group.

Many criteria pertaining to capital adequacy, asset quality, liquidity, provision coverage and profitability are healthy. Banks are also in accordance with the RBI’s Big Exposure Framework standards, according to the central bank.

The RBI stated that the remarks were sent due to “media reports expressing concern about the exposures of Indian banks to a commercial group,” without mentioning the Adani Group.

The RBI declaration comes only one day after it was reported that the central bank has requested information from banks regarding their exposure to the business.

Adani Group, on the other hand, has dismissed the criticism and denied any misconduct.

Adani, who was the richest Indian in the world until recently, has now slid to 22nd place on the Forbes Real-time billionaire list for 2023.

Meanwhile, the country’s largest lender, SBI, disclosed that their entire exposure to the Adani Group is 0.88 percent of the book value, or around Rs 27,000 crore. SBI chairman Dinesh Khara said the bank does not anticipate the conglomerate encountering any issues to fulfil its debt commitments and highlighted that SBI has not granted any loans against shares to the company.

The Punjab National Bank (PNB) stated that their entire exposure to the Adani Group of Rs 7,000 crore is supported by appropriate cash flows and that there is no concern about repayments at this time. Bank of Baroda has exposed to Rs 4,000 crore. Other banks’ exposure has not yet been disclosed.

The so-called Adani Group scandal has affected the Indian banking sector’s stability. Not only that it has also brought frowns in RBI’s confidence.  It is true that the Adani Group controversy implications have also brought in the risk of sacrificing stability for profit among shareholders.