New Delhi, Feb 7 (PTI) 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.

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"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.

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"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."

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)