Companies get bank loans based on fundamentals, not m-cap: RBI Governor Das

Exposure of domestic banks to the shares of Adani Group is insignificant: DG Jain

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