RBI monitors top 20 corporate houses with highest bank loans after Adani-Hindenburg report

RBI Update: The Reserve Bank of India (RBI) is closely monitoring the top 20 corporate houses with the highest outstanding bank loans, following the recent Hindenburg Research report on the Adani group. According to a report by Economic Times, RBI is paying particular attention to the Central Repository of Information on Large Credits (CRILC) and other financially important institutions to monitor the profitability and financial performance of these companies. The monitoring system is designed to detect any crisis in advance to ensure that it does not affect the balance sheet of banks. Data on the companies' business models and loan portfolios are also being monitored.

RBI has been regularly monitoring these companies but has intensified its scrutiny after the Hindenburg report. The regulator is cautious as banks have recently emerged from a long battle with the Non-Performing Asset (NPA) crisis. The NPA of commercial banks has reduced from 11.2 per cent in March 2018 to 5.8 per cent in March 2022.

RBI issued a statement after questions were raised about the loans given to the Adani group, stating that India's banking sector is stable and resilient. The regulator has a central repository of information on large credit databases to monitor loans exceeding five crore rupees. RBI's monitoring of large loans, the profitability of corporates, and the debt raised by companies from abroad through External Commercial Borrowing or bonds aims to ascertain whether the company is in financial trouble.

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