India's top banks say Adani's exposure is within RBI limits, but be cautious after Hindenburg report washes out ₹4 lakh crore from Adani's account in two days.
With ripple effect on bank stocks a day after US short-seller Hindenburg Research India washed away over ₹4 lakh crore from Adani account on allegations by top banks, they say they are cautious but claim that so far Nothing dangerous.
Major public sector banks on Friday said their exposure to the Adani group was within the limits set by the central bank to offset default risks from their exposure to the group. The Reserve Bank of India does not allow any single group of connected companies to exceed 25% of the bank's available eligible capital base.
Benchmark indices Sensex and Nifty closed over three-month low on Friday, down over 1 per cent each, led by selling in banking, financial, utilities and oil stocks. Union Budget. This resulted in a loss of ₹7.67 lakh crore to investors due to panic selling.
Major shares of Gautam Adani-run Port-to-Energy group plunged 20%, with 6 out of 10 scrips hitting the lower circuit. His follow on offer of 20,000 crores also got a very muted response.
Public sector banks in India have been hit by massive corporate defaults in the past. Since then, lenders have taken several measures to clean their books, but any fresh default by any large corporate could put pressure on their balance sheets.
"There is nothing dangerous about our Adani exposure and we have no concerns as of now," Dinesh Kumar Khara, president of the country's largest lender State Bank of India, told Reuters. The chairman confirmed that the group has not raised any funds from SBI recently, however, the bank will be 'prudent' on any such requests in future. It has reached out to the company for clarification and the board will only then take a decision on the bank's risk to the group, Reuters said quoting an official statement.
An official at state-run Bank of India said lenders' loans to the Adani group were within permissible limits, while officials at two other private lenders said they were not yet in "panic mode" but were cautious.
"Our exposure to the Adani group is below the Reserve Bank of India's large exposure framework," said a Bank of India official on conditions of anonymity.
"As of last month, the interest payment of the Adani group on the loan remains intact."
A bank official, on condition of anonymity, said that Union Bank of India was not looking at any stress from its exposure to the group, as the matter was private.
The Adani Group includes the flagship Adani Enterprises Limited, as well as Adani Ports and Special Economic Zone Limited, Adani Power Limited, Adani Green Energy Limited and Adani Transmission Limited.
According to Jefferies, the group's loans account for 0.5% of total loans in the Indian banking sector. Credit for public sector banks is 0.7% of total credit and for private banks it is 0.3%.
A senior official of a private bank, who did not want to be named as he was not authorized, said, “We are waiting for more clarification from them and each bank will have to take a decision based on what kind of risk they have on Adani.” Is." Asked to speak to the media.
No comments:
Post a Comment