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RBI to ask banks about their exposure in Dubai World

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Press Trust of India Ahmedabad
Last Updated : Jan 20 2013 | 12:21 AM IST

The Reserve Bank today said it will ask banks to furnish details regarding their exposure in the Dubai World, a government-owned firm that has requested postponement of $59 billion loan repayment, said RBI deputygovernor Shyamala Gopinath here.

At an IIM Ahmedabad event here, she said: "We will ask banks to furnish the details regarding their exposure in Dubai World," adding, "at present, I also do not have much information on the issue because the situation is still unfolding."

On measures the apex bank is contemplating, she said, "we first need to understand the extent of the exposure of our banks. Once we have the details, we can comment."
The announcement in the Gulf country has triggered a shock wave in the stock market across the globe.

On Wednesday, the Dubai government-owned investment company Dubai World asked for a six month delay on repaying its $59 billion debts. This raised concern of the financial health of the once financially strong Gulf state.

The crisis in the Gulf country has also hit the Sensex which plunged of over 550 points in the mid session today.

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First Published: Nov 27 2009 | 6:50 PM IST

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