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RBI says 'banking sector remains resilient, stable' amid Adani stocks rout

In an apparent reference to the Adani group, the Securities and Exchange Board of India (SEBI) on Monday said that unusual price movement in the stocks of a business conglomerate has been observed during the past week and that it is committed to ensuring market integrity.

Amid the deepening Adani Group crisis, the RBI said that its current assessment shows that the banking sector in India is resilient and stable.

State Bank of India , the country’s largest lender, on Friday said its quarterly profit surged a better-than-expected 68.5% to a record high, boosted by better interest income and a drop in bad loan provisions.

The Reserve Bank of India said that as per its current assessment, the banking sector remains resilient and stable.

Even as opposition has been pressing its demand for a Joint Parliamentary Committee (JPC) probe into the Hindenburg-Adani row, the lenders have said that their exposure to the conglamorate is within permitted limits while Securities and Exchange Board of India (SEBI) has asserted that it is committed to ensuring market integrity.

Nirmala Sitharaman also swatted away questions about the Adani Group cancelling a fresh sale of shares in the wake of the stock crash.

While the finance minister said that LIC and SBI have explained that their exposure to the Adani Group is within limits, the RBI in a statement said that the Indian banking sector remains "resilient and stable".

The RBI said it was issuing the comments as there had been media reports expressing concern about the exposures of Indian banks to a business conglomerate

The Reserve Bank of India also said that it is constantly monitoring the banking sector.