IDFC First Bank says, 'comfortable with its exposure to Adani Group'

IDFC First Bank says, 'comfortable with its exposure to Adani Group'

The company in the statement said that the funded outstanding of the company is only 0.06 per cent of the funded assets as of December 2022.

FPJ Web DeskUpdated: Thursday, February 02, 2023, 12:51 PM IST
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IDFC First Bank says, 'comfortable with its exposure to Adani Group' | Wikipedia

The shares of Adani Group have been volatile since US-based short seller Hindenburg Research released a report accusing Adani Group of 'stock manipulation and fraud'. The IDFC First Bank clarified in an exchange filing that it is comfortable with the exposure to the Adani Group as the company has a strong cash-flow and operating model.

The company in the statement said that the funded outstanding of the company is only 0.06 per cent of the funded assets as of December 2022. They also added that the bank has been receiving payments as per the quarterly amortization payment schedule.

In the statement, IDFC First Bank said, "The Bank has working capital (non-funded) outstanding of only 0.51% of the funded assets as of December 31, 2022, of which the majority, at 0.38%, is a secured letter of credit, which will mature in the next 2–5 months. The balance, at only 0.13%, has a maturity of 1-2 years."

The bank also clarified that it has no exposure to any offshore entities in the Adani Group or to any shares of the Adani Group companies.

The bank said it continues to reduce concentration risk and has brought exposure to the top 10 group borrowers down to 8 per cent in December 2022 from 17 per cent in March and will continue to do so.

The shares of IDFC First Bank on Thursday at 12:45 pm was at Rs 58.70, up by 3.89 per cent.

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