Adani-Hindenburg Effect? RBI Now Looking Closely At India's 20 Biggest Busineses To Identify Potential Risk

In a move that probably seems to be aimed at identifying financial risks in advance to avoid a repeat of something similar to the Adani-Hindenburg row, the Reserve Bank of India (RBI) is keeping a close watch on the country¡¯s 20 biggest business houses that have the largest borrowings from banks, as per people with knowledge of the matter.

RBI Monitoring India's 20 Biggest Business Houses

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Some of the biggest business houses in India include Tata group, Aditya Birla group, Bajaj group, Reliance Industries, Adani group, Mahindra group, amongst others.

This increased vigilance is in addition to the routine monitoring of systemically important financial intermediaries and the Central Repository of Information on Large Credits (CRILC), as per ET.

RBI is also monitoring profitability and other financial performance measures of these top businesses apart from the check on the quantum of debt etc.

RBI said that a monitoring system has been put in place to catch any build-up of stress so that preventive steps can be taken when required. It wants to identify debt-servicing issues so that preventive steps can be taken swiftly.

The RBI is deep-diving into the data and information available to study the business models, and loan portfolios along with various performance parameters.

Also Read: How Rajiv Jain Made Rs 3,100 Crore Profit On Adani Stocks In 2 Days

RBI Governor Confident About Banking System

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Earlier last month, the RBI governor said that the strength, size and resilience of the Indian banking system now are much stronger and larger "to be affected by a case like this," in reference to the developments at Adani Group, without directly mentioning the Adani Group.

Answering the queries related to the Adani Group, RBI governor Das said the RBI has made its own assessment to come out with the statement on Friday, where it termed the banking sector as strong and resilient.

When briefing reporters after the monetary policy announcement, RBI governor Das said that when banks do lend, they take their calls on the fundamentals of a company and the expected cash flows from projects.

He also made it clear that the market capitalisation of the company does not have any role to play there.

Also Read: Meet The 6 Member Committee Appointed By SC To Probe Adani Group

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