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Mumbai: The Reserve Bank of India ( RBI ) has asked banks for details of their direct and indirect exposures to West Asia, seeking to map out banking risks associated with the Iran war that has already roiled nearly $2.5 trillion of bonds worldwide and shattered energy supply chains. The region is the biggest individual remittance provider for the country.The central bank, according to multiple bankers ET spoke with, has asked lenders to share details of areas where they could face issues-like exposure to Indian companies having subsidiaries in the region, companies having a large import or export position in West Asia and even retail banking exposure through non-resident Indians (NRIs) who would have taken home loans and which could be at risk."The direct exposure for banks to companies in the region may be small but there could be companies that have a significant dependence or business relationship with some counterparties in the region," said a senior private sector bank official. "This kind of data does not reflect in banks' routine reporting with the RBI, including databases like Central Repository of Information on Large Credits (CRILC), but it is necessary in uncertain times like these."A central bank spokesperson did not respond to ET's email seeking a comment.Bankers said such first-hand information would help the RBI make a plan if some relief has to be given in the next few months, though the situation remains fluid."We have already seen an impact due to the shortage of LPG. There is likely to be an impact on important sectors like fertilisers. Then, some sectors like the ceramic manufacturers in Morbi had to shut operations," said a senior public sector bank executive. "These developments will not lead to an immediate impact on banks but could dent balance sheets in the first quarter of the next fiscal."Bankers are bracing for imported inflation on varied sectors-from transport and logistics to accommodation and hospitality. Although corporate India balance sheets are still in top condition, the biggest hit will be for small and medium enterprises, they said."Some industries are at a severe risk, Morbi being a very good example. There is a possibility that the RBI will have to think of some relief measures like a moratorium or an emergency credit line if this situation prolongs," said another public sector bank official.The Gulf region is among the biggest remittance-generating markets for India and individual remittances are crucial for stabilizing the balance of payments and boosting discretionary expenditure in hundreds of thousands of households. Six Gulf Cooperation Council (GCC) countries together accounted for roughly 38% of India's total FY24 remittances of $119 billion, with the share of the UAE alone at about a sixth of the total. Remittances are crucial for India's urban real-estate boom and they have consistently beaten annual gross foreign direct investment (FDI) in India in this millennium.Exports could face an immediate $8-10 billion hit if the ongoing geopolitical tensions and logistics disruptions continue, according to exporters' associations, as cancellations from West Asian customers and uncertainty around trade routes and delivery timelines increase.So far, the RBI has responded by ensuring sufficient liquidity in the banking system and preventing a sharp fall in the rupee. However, the central bank will have to step in with stronger measures if this crisis continues, bankers said.