India’s largest bank, the State Bank of India has an exposure of around $2.6 billion (over Rs 21,000 crore) to the crisis-hit Adani group, a latest report from Bloomberg has claimed. SBI has reportedly given loans of this amount to companies of Adani Group, which is half of what rules permit, a person close to the matter was quoted as saying.
The exposure of SBI to Adani includes $200 million from its overseas units, the unidentified source further revealed. Earlier on Thursday, SBI Chairman Dinesh Kumar Khara said that the loans were being serviced by Adani Group companies. He had added that he doesn’t see “immediate challenge” to the bank’s loan to the conglomerate.
The report comes after the Reserve Bank of India had on Thursday asked banks about details of their exposure to Adani group companies amid the ongoing rout. Adani group stocks have lost over $100 billion in value in six days since the damaging report by New York-based short seller Hindenburg Research.
Another public sector bank, Bank of Baroda has said its total exposure is Rs 7,000 crore, asserting that it is fully secured. Life Insurance Corporation (LIC) has disclosed having Rs 36,474.78 exposed to Adani group’s debt and equity, adding it was less than a percent of its total investments.
(With inputs from agencies)