The absolute exposure of Indian banks to Adani group companies is said to be close to Rs 80,000 crore.
Stocks of Adani Group’s listed firms have been hit hard ever since the damaging Hindenburg report came out. The New York-based shortseller’s allegations have resulted in a crisis for one of India’s biggest conglomerates.
40 percent of total Adani Group debt of Rs 2 lakh crore is owed to Indian banks. The absolute exposure of Indian banks to Adani group companies is close to Rs 80,000 crore, as per a recent CLSA report.
The biggest exposure is said to be of India’s largest lender, State Bank of India (SBI), at Rs 27,000 crore. This is 0.88 percent of the book, SBI revealed. SBI does not “envisage any kind of a challenge in terms of their ability to service the loan obligations which they have taken," SBI chairman Dinesh Khara said. It added that Adani Group had an excellent repayment record.
The exposure of Punjab National Bank (PNB) has been reported at around Rs 7,000 crore. Rs 2,500 crore of this is related to the airport business. This includes Rs 42 crore as investment and remaining credit. The bank has said that whatever it is exposed to the Adani Group is backed by cash flow. PNB managing director Atul Kumar Goel said that there is no worry as on date as bank doesn’t have too much exposure keeping its size. "We are keeping a close watch on development (on Adani front) in times to come," Goel added.
The exposure of Bank of Baroda (BoB), another state-owned lender, has also been reported at around Rs 7,000 crore. This is also fully secured. BoB has said that it has reduced exposure to the Adani Group entities over the last two years. It has assured that the bank has no concerns on asset quality issues with the group. BoB MD and chief executive Sanjiv Chadha did not share a number himself but said that its overall exposure to Adani Group is one fourth of the single group exposures allowed.
Jammu and Kashmir Bank’s exposure to Adani Group was Rs 400 crore, which has now come down to nearly Rs 250 crore in the Adani Group. JK Bank Deputy General Manager Nishikant Sharma has said that the bank’s loans “are secured against the assets of the projects that were financed by JK Bank.” J-K Bank has assured investors there is nothing to worry about.
IDFC First Bank's numbers are not known but the bank's funded outstanding was reported at 0.06% of the funded assets as of December 2022. The non-funded outstanding of IDFC's funded assets stood at 0.51%. The bank has said it is "comfortable with the exposure", in an exchange filing.
Axis Bank has also not shared numbers but said that its exposure to Adani Group is 0.94 percent of total loans. The bank has said it remains “comfortable with our exposure to Adani Group basis the same," in a regulatory filing. Funded outstanding is 0.29 percent while non-fund based outstanding is 0.58 per cent of the net advances, Axis Bank said. .Invesments are 0.07 percent.
The biggest exposure to the Adani Group is from national insurer Life Insurance Corporation (LIC), which has disclosed holdings of Rs 36,474.78 crore in Adani group's debt and equity.
READ | Which mutual funds have invested in Adani stocks? Here's the list
(With inputs from agencies)
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 "Adani crisis: From SBI to PNB, exposure of banks known so far, check list")
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