Global rating agencies Fitch and Moody’s said banks’ exposure to the Adani group is not large enough to affect their credit quality.

“Fitch Ratings believes that Indian banks’ exposure to the Adani group is insufficient in itself to present a substantial risk to the banks’ standalone credit profiles,” the rating agency said in a note.

Moody’s stated that although the exposures to Adani group are larger for public sector banks than for private sector banks, they are smaller than 1 per cent of total loans for most banks.

“Risks for banks can increase if Adani becomes more reliant on bank loans,” Moody’s said.

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,” Moody’s said.

“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.”

Fitch said ratings of banks remain driven by expectations that the banks would receive extraordinary sovereign support, if needed.

US-based activist short-seller Hindenburg Research in a report dated January 24 made a litany of allegations, including fraudulent transactions and share price manipulation at the Gautam Adani-led group.

The Adani group has dismissed the charges of the short-seller as lies, saying it complies with all laws and disclosure requirements.