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Amid Adani Group developments, RBI Guv says banking system stronger to be impacted by 'case like this'

Meanwhile, Das said that over the years, the appraisal methods of the banks have significantly improved
Last Updated : 08 February 2023, 16:03 IST

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Amid growing concerns over the exposure of banks to the embattled Adani Group, Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday said the Indian banking system is strong and resilient and won’t get affected by troubles in any one business conglomerate.

"The strength, size and resilience of the Indian banking system now are much stronger and larger to be affected by a case like this," Das said at a media briefing after the announcement of the monetary policy action at RBI headquarters in Mumbai.

Replying to a question on banks and NBFCs' exposure to Adani group companies, Das said, “individual cases and their numbers, as you are aware, we don’t discuss in the public domain.”

Shares of billionaire Gautam Adani-led firms have crashed following US-based short-seller Hindenburg Research’s report accusing the Adani Group of accounting fraud and stock manipulation.

The exposure of LIC, SBI and other banks in Adani group companies has become a matter of huge political slugfest.

Das said the Reserve Bank has taken a number of steps in the last three to four years to strengthen the resilience of Indian banks. "We have come out with clear guidelines to regulate the governance in Indian banks," he said.

RBI Governor further added, “We have also rationalised in the last two years the large exposure norms and all that I would like to add at this point of time is that the Indian banking sector and the NBFC sector continue to be resilient and strong."

RBI deputy governor MK Jain said the loans given by the Indian banks to Adani group companies are “against underlying assets, operating cash flows, (and) projects under implementation, and not based on market cap.”

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Published 08 February 2023, 09:20 IST

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