The Indian banking sector, including non-banking finance companies (NBFCs), continues to be and strong, Reserve Bank of India (RBI) Governor Shaktikanta Das said Wednesday, apparently referring to concerns over lenders’ exposure to Adani Group.

"The RBI has made its own assessments. The large exposure guidelines prescribed by the RBI are fully complied with by all the banks. The strength, the size and the resilience of the Indian banking system is now much larger and much stronger to be affected by an individual incident or a case like this," Das said, when asked by reporters about domestic banks' exposure to Adani Group.

Banks lend against underlying assets, operating cash flows and projects under implementation, and not based on market cap.

In the last three-four years, the RBI has taken a number of steps to strengthen the resilience of banks.

"We have come out with clear guidelines to regulate banks.  There are guidelines on audit committees. We also made mandatory for appointment of chief risk officers in banks," Das said.

Shares of Adani group companies faced a market rout after US short-seller Hindenburg Research released a report alleging that the ports-to-energy-to-cement conglomerate had engaged in “brazen stock manipulation and accounting fraud”. The report raised concerns about Adani Group’s high debt levels and the alleged use of offshore entities in tax havens.