SBI, the nation's biggest lender, stated Friday that its exposure to the Adani Group is 0.88 percent of the book, or Rs 27,000 crore.
SBI chairman Dinesh Khara stated on Friday that the bank's exposure of Rs 27,000 crore to the Adani Group is 0.88 percent of the bank's overall loan book. In the wake of this announcement, shares in most firms belonging to the Adani Group have fallen again. As the chaos around one of India's largest industrial companies grew on Friday, parliament was postponed.
After being charged of fraud and stock market manipulation in January by US short seller Hindenburg Research, Gautam Adani's ports-to-power enterprise has been in free fall ever since. Adani Group has slammed the article as "baseless" and "malicious." The company claims that its underlying business structures are "solid." However, experts believe the organisation hasn't provided enough responses to the report's concerns.
Speaking at a press conference following the announcement of October-December quarter earnings, SBI chairman Dinesh Khara said: "We have lent to Adani (group) for projects having tangible assets and adequate cash. They have met obligations...our total exposure to Adani group is 0.88 per cent as of December 31."
According to Khara, those loans were against cash-generating assets or businesses. "There`s no cause for concern for us," he added.
Almost a week after a report by US-based Hindenburg Research said the Adani Group had poor business fundamentals, stock manipulation, and accounting fraud, the head of the SBI has spoken on the matter.
Given their lofty values, the study sparked worries that Adani group company shares might fall from their present levels. Shares of all firms within the Adani Group have fallen after the report's release, although to various degrees.
Also, READ: S&P Global lowers Adani Ports, Adani Electricity's rating from stable to 'negative'
Adani Group had responded extensively on Sunday, calling the Hindenburg Research research a "calculated attack" on India, its development narrative, and its aspirations rather than a personal attack on any one firm. The report, it continued, was "nothing but a fiction."
(With inputs from ANI)
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