Adani crisis an individual case; Indian banking sector, NBFCs will not be affected by one case: RBI Gov Shaktikanta Das

Adani crisis an individual case; Indian banking sector, NBFCs will not be affected by one case: RBI Gov Shaktikanta Das

He also clarified that the banks don't lend money to companies on the basis of their market capitalization but on the basis of the strength and fundamentals of the companies.

FPJ Web DeskUpdated: Wednesday, February 08, 2023, 02:07 PM IST
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RBI Governor Shaktikanta Das and Gautam Adani |

In his address on Wednesday, Reserve Bank of India Governor Shaktikanta Das clarified that the issue is an individual case and cannot be discussed in the public domain.

Das also said that the RBI has taken a number of steps to strengthen the resilience of Indian banks, and the country's banking system is much stronger and will not be affected by one case or incident.

He also said that the whole perception is because of the market capitalization of the group's shares. He also clarified that the banks don't lend money to companies on the basis of their market capitalization but on the basis of the strength and fundamentals of the companies.

He added that, "Indian banking sector and the NBFC sector will continue to remain strong and resilient."

Shares of Adani Groups

This directly impacted the markets, as they soared and the Adani Group's shares surged for a second straight day. Adani Enterprises saw a jump of over 11 per cent, whereas Adani Ports and the Special Economic Zone went up by close to 7 per cent. Adani Power limited was also up by 5 per cent at Rs 181.90.

RBI increases repo rate by 25 basis points

Das in his address said that the global economic outlook is not as grim as it was earlier, but the RBI still increased the repo rate by 25 basis points while still retaining its stance of withdrawing accommodation.

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