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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% of total loans for most banks,” it said.

“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.

“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.”