Moody's Investor Service on Tuesday said banks' exposures to Adani are not large enough to affect their credit quality materially.
"While we estimate that the exposures are larger for public sector banks than for private sector banks, they are smaller than 1 per cent of total loans for most banks," it said. ALSO READ: Some Adani shares rise from Hindenberg crisis, after group's market losses hit $110 billion
"Risks for banks can increase if Adani becomes more reliant on bank loans."
However, the group's access to funding from international markets can be curtailed because of heightened risk perception.
"Yet the overall quality of Indian banks' corporate loans will be stable," it said. ALSO READ: LIC holds under 1% stake in equity, debt in Adani Group: Govt tells Parliament
"Corporates in general have deleveraged in the past few years. This is reflected in modest growth in their corporate loan books. Further, banks' underwriting has been conservative."
{{/usCountry}}"Corporates in general have deleveraged in the past few years. This is reflected in modest growth in their corporate loan books. Further, banks' underwriting has been conservative."
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