SBI chairman Dinesh Kumar Khara stated that the Adani Group companies were servicing the loans and that he did not see an 'immediate issue' to...
Digital Desk: The State Bank of India, the country's largest financier, has made loans of up to $2.6 billion to companies in the Adani conglomerate, or roughly half of what is permitted under laws.
SBI's exposure includes $200 million from its overseas operations, according to the individual, who requested anonymity to disclose private information. SBI Chairman Dinesh Kumar Khara stated on Thursday that the Adani Group companies were servicing the loans and that he does not see an "immediate challenge" to whatever the bank has lent thus far.
The Reserve Bank of India, the country's banking regulator, had asked lenders for details on their exposure to the conglomerate following a drop in the stock prices of group companies, Bloomberg News reported earlier Thursday.
SBI did not respond to an email requesting comment on the exposure.
The exposure of numerous lenders to companies controlled by Gautam Adani has come under increased investigation following a damning analysis from US-based Hindenburg Research.
Credit Suisse Group AG and Citigroup Inc.'s wealth divisions have stopped accepting the group's securities as collateral for margin loans to their clients, according to Bloomberg News.
Adani has repeatedly refuted the allegations, labelled the study "bogus," and warned of legal action.
Other domestic banks are likewise confident in the Indian group's ability to service its debts.
According to Atul Goel, the CEO of the state-run Punjab National Bank, the bank's exposure to Adani firms was 70 billion rupees last month. Goel also said about a third of it went to Adani's airport company, which cash-flows back the total advance.
In an exchange report on Thursday, private sector IDFC First Bank Ltd. stated that its financed outstanding exposure to the Adani Group was less than 0.1% of its total loans. Meanwhile, IndusInd Bank Ltd., which has a loan book of 29 trillion rupees, stated that its exposure to the group is 0.5% of its loan book.
Leave A Comment