SBI Gave Loans Worth $2.6 Billion To Adani Group Firms

State Bank of India(SBI)

SBI: The Indian banking sector’s direct exposure to the Adani group was just 0.6%, Societe Generale said in a report on Wednesday. It said markets are “overpricing” the risk to Indian lenders of their exposure to the Adani Group and that a selloff in banking shares seemed overdone.

The Country’s largest public lender State Bank of India has given loans of as much as Rs. 21,000 crores ($2.6 billion) to Adani Group firms, said a report on Thursday.

Dinesh Kumar Khara, chairman of SBI, said earlier on Thursday the Adani Group companies were servicing the loans and he doesn’t see an “immediate challenge” to whatever the bank has lent so far.

According to the reported data, SBI’s exposure includes $200 million from its overseas units. SBI’s scrip on BSE was trading nearly flat at Rs. 527.75 on Thursday.

Punjab National Bank has a total exposure of Rs. 7,000 crores to Adani Group, but there is currently no worry pertaining to those accounts, the state-run lender’s managing director and chief executive said on Monday.

“Out of Rs. 7,000 crores, around Rs. 2,500 crores is related to Adani’s airport business,” PNB CEO Atul Kumar Goel told media at a virtual press conference after the company’s quarterly results.

“Whatever the exposure we are having is backed by cash flow.” However, the bank is keeping a “close eye” on the developments pertaining to the news flow around Hindenburg’s research report, Goel said.

The Nifty Bank index has lost 5.4% since the New York-based short-seller released its report.

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Spriha Rai