After Hindenburg-Adani row, RBI keeps closer eye on India's top 20 conglomerates: Report

The Reserve Bank of India is reportedly keeping a close watch on 20 of the top business houses in the country that have large borrowings from banks in order to identify risks in advance. This is over and above the routing monitoring of systemically important financial intermediaries and the Central Repository of Information on Large Credits (CRILC), stated a report. 

The apex bank is also monitoring profitability and other financial performance measures of these top businesses apart from the check on quantum of debt etc, according to a report by The Economic Times. 

The report, citing people in the know, 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, loan portfolios along with various performance parameters. 

The Reserve Bank had issued a statement too after Hindenburg published the report on Adani. On February 3, the RBI stated that the banking sector remains resilient, and that it maintains constant vigil on the banking sector as well as individual banks. It said that the RBI has a Central Repository of Information on Large Credits system where banks report exposure of Rs 5 crore and above which is used for monitoring purposes. 

The RBI had, following a series of bank scams and the IL&FS default, set up a separate vertical to supervise and regulate for improvement of oversight for banks and non-banking finance companies (NBFCs).

Also read: Hindenburg-hit Adani Group has $2-bn bonds due for repayment in 2024