Mumbai: The country’s banks are in a strong position and they will not be affected by cases like Adani, according to Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday.
In a press conference organised after the three-day review meeting of the bi-monthly Monetary Policy Committee (MPC), the RBI governor said that the country’s banks are so big and strong that they will not be affected by such cases. On a question related to the Adani group, Das said the central bank had issued a statement last week after doing its own assessment, saying that the country’s banks are strong.
Without mentioning the Adani group, the RBI governor said that in today’s time, the size of Indian banks, their capacity is very strong. In fact, the RBI governor was asked whether, in the current situation, would the RBI issue any guidelines to domestic banks regarding loans given to Adani group companies.
Shaktikanta Das said that while lending, banks look at the fundamentals of the company concerned and the cash flow position for the respective projects. In the case of debt, there is nothing to do with the market capitalization of the companies. With the passage of time, the appraisal system of banks has improved a lot. In the last three-four years, RBI has taken several important steps to strengthen the banks. Guidelines have also been issued from time to time regarding Steering, Audit Committees and Risk Management Committees.
On this occasion, RBI Deputy Governor MK Jain said that the loan given by domestic banks to Adani Group is not very much. The loan given against shares is very less.
After the report of Hindenburg Research, an American financial research and investment company, the main opposition parties and various sections have raised concerns about the loans given by banks to Adani group companies. After the report, there was a huge fall in the shares of the group companies last week, but at the moment the stock of the company is showing a boom.
