Soon after Finance Minister Nirmala Sitharaman’s statement that the Indian financial system is robust, corporate leaders said India’s economic growth story will continue and no one should bet against the country.
“Global media is speculating whether current challenges in the business sector will trip India’s ambitions to be a global economic force. I’ve lived long enough to see us face earthquakes, droughts, recessions, wars, terror attacks. All I will say is: never, ever bet against India,” said Chairman of Mahindra group, Anand Mahindra.
Uday Kotak, MD & CEO of Kotak Mahindra Bank said he does not see any systemic risk to the Indian financial system from recent events. “However, large Indian corporates rely more on global sources for debt and equity finance. This creates challenges and vulnerabilities. Time to further strengthen Indian underwriting and capacity building,” he tweeted.
India Inc leaders were reacting to the volatility in the Indian markets following an American short seller report on Adani group which resulted in the Adani group stocks losing over $100 billion of market valuation. Some of the stocks recovered on Friday.
In an interview to Times Now, Sitharaman had said that regulators Sebi and RBI should always be on their toes to keep the equity market stable and indicated that the Adani stock rout following a Hindenburg report was a company specific issue. She said banks and insurance companies are “not overexposed” to any one company and assured that Indian markets are very well managed by its regulators.
During the weekend, the Reserve Bank of India and the market regulator, the Securities and Exchange Board of India, came out with separate statements saying that the financial markets are safe and well-regulated. Several banks including the State Bank of India, Axis Bank and Bank of Baroda said their exposure is within limits and do not see any challenges in servicing the loans.
(With inputs from PTI)
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