The leading private sector bank, HDFC has exceeded the RBI limits on loans to Reliance Industries. HDFC has exceeded the limits for a single-borrower, defined by RBI on loans to the industry giant Reliance.

HDFC Bank

HDFC Bank said that its board of directors permitted “the said excess in respect of this exposure” and it was within the 20 per cent limit of capital funds.

According to RBI norms, in case of a single borrower the limit for credit exposure is 20% and for a borrower group it is 40%. The RBI allows banks to enhance this exposure by further 5 per cent of capital funds in exceptional circumstances, with the approval of their boards.

Without disclosing the exact amount, HDFC Bank said, "Amid the year finished March 31, 2015 the bank's credit exposures to single borrowers and gathering borrowers were inside of the breaking points endorsed by the RBI with the exception of if there should arise an occurrence of Reliance Industries Limited, where the single borrower cutoff points were surpassed." “We have not crossed any limit in the previous fiscal year”, Bank added.