RBI seeks details from banks about Adani exposure

Reuters

New Delhi/Mumbai, February 2

The central bank has asked local banks for details of their exposure to the Adani group of companies, government and banking sources said on Thursday.

The Reserve Bank of India (RBI) did not immediately respond to a request for comment.

The sources declined to be identified because they were not authorised to speak to the media.

Shares in Adani group of companies plunged on Thursday after the conglomerate, led by tycoon Gautam Adani, shelved a $2.5 billion share sale amid a turbulent market, citing the need to insulate investors from potential losses.

Information being sought by the RBI includes details of collateral being used to back loans and any indirect exposure banks may have, one of the sources said.

The banking sector's direct exposure to the Adani group was just 0.6%, Societe Generale said in a report on Wednesday.

It said markets are "overpricing" the risk to lenders of their exposure to the Adani Group and that a selloff in banking shares seemed overdone.

The conglomerate's market losses have been to more than $100 billion and sparking worries about the potential systemic impact.