Banks gave loan to Adani group according to the rules, RBI came in front for the first time

For the first time, the RBI has opened its mouth on the situation arising out of the sharp fall in Adani Group's shares since the week following the Hindenburg report. The country's largest financial regulatory agency has said without naming the Adani group that the banking system is strong-satisfactory and has given loans to big industrial houses as per RBI norms. The central bank has also said that it is fully alert and monitoring the situation.

Before this statement of RBI, on Friday, two public sector banks State Bank of India and Bank of Baroda said that they have given loans to Adani group companies as per the rules and no proposal for additional loans has come from the group. On Friday late evening, it was said by the RBI that there have been several reports in the media regarding the loan given by Indian banks to a big corporate house.

On January 26, an eminent agency named Hindenburg had given a report regarding the Adani group, which said that the group had deliberately inflated the prices of shares and artificially overvalued them. After this, the share prices of all the ten listed companies of Adani Group in India have fallen on their face. Under pressure, the company has also had to cancel its FPO (capital raising issue from the market). The valuation of Adani group companies has fallen by $100 billion in the last ten days.

Finance Secretary TV Somanathan said that the stock market turmoil caused by the sharp fall in Adani Group's shares is nothing more than a 'storm in a teacup' from a macro-economic perspective. Regarding the possible impact of fraud allegations on Adani group companies on banks and insurance companies, the senior most official of the Finance Ministry said that there is no reason to worry about the financial stability of depositors or policy holders or any shareholder of these companies Is. The stock of any one company is not such that it can make any impact on the macro-economic level. India's public financial system is very strong and stock market volatility is not a matter of concern for the government. There is an independent regulator to take necessary steps in this regard.