LIC and SBI have clearly explained that their exposure is “well within permitted limits” and “sitting on profits”, the Finance Minister said in an interview on Friday.
Union Finance Minister Nirmala Sitharaman on Friday said that both Life Insurance Corporation (LIC) and State Bank of India (SBI) are not overexposed to Adani Group. FM Sitharaman revealed that both the country’s largest insurer and biggest public sector bank have issued detailed statements on their exposure to Adani. LIC and SBI have clearly said that their exposure is “well within permitted limits” and “sitting on profits”, the Finance Minister told CNN-News18 in an interview.
“Both SBI and LIC have issued detailed statements on Adani. They are not over exposed. They have very clearly said that their exposure well within the permitted limits and sitting on profits,” Sitharaman was quoted as saying.
She also said that India is a well-regulated and well-government financial market. She added that regulators in the country are “very stringent” with regard to certain governance practices, when asked about the Adani Group row.
On the Adani crisis, she had added, “India remains a well-governed, well-regulated financial market. Our regulators are very stringent about certain governance practices. So many lessons have been learnt over the decades.”
FM Sitharaman’s comments comes as erstwhile India and Asia’s richest man Gautam Adani is witnessing one of the biggest wealth routs in history. Adani group stocks had lost over $100 billion in value on Thursday. The carnage happened within a week of the release of the damaging report by New York-based shot seller Hindenburg Research. The report alleges massive fraud and stock price manipulation by the ports-to-energy conglomerate.
Adani Group has rejected the allegations by Hindenburg, calling them ‘baseless’ and ‘malicious’. However, markets have not been kind to most of the listed companies of the group. The group also called off its Follow-on Public Offering (FPO) of Rs 20,000 crore after it was fully subscribed. It said it would be returning the money raised to its investors.
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