The Adani saga: What it means for Indian banks

Globally, for infrastructure projects, the construction risk is borne by the bond market; the banks step in at a later stage when they can smell the cash flow

“There have been media reports expressing concern about the exposures of Indian banks to a business conglomerate.

As the regulator and supervisor, the RBI maintains a constant vigil on the banking sector and on individual banks with a view to maintain financial stability.…

As per the RBI’s current assessment, the banking sector remains resilient and stable…”

India’s central bank issued this release on February 3. It did not name the business conglomerate but everyone is aware of what had prompted the regulator to say so.

To be sure, such a statement is not rare. Between September 2018 and March 2020, there had