Indian banks lend money to business houses not based on their market capitalisation (m-cap) but on parameters that depict the fundamentals of the business, said Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday.
He did not name the Adani Group, which witnessed a rout in its share prices following a US-based research firm's report, resulting in many questioning the safety of Indian banks' exposure to this group.
"We have made our own assessment.
The large exposure framework of RBI is fully complied with by all the banks. The strength, size, and resilience of the Indian banking system is much larger and stronger to be affected by an individual case like this," said the RBI Governor at the post monetary policy press conference.
The governor clarified that the doubts in the mind of people are stemming from the rout in the Adani Group shares last week, resulting in a steep decline of their market capitalisation.
This story is from the February 09, 2023 edition of Business Standard.
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This story is from the February 09, 2023 edition of Business Standard.
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