The Hindenburg report on Adani has taken Indian markets by storm, and while it scared away retail investors from the conglomerate's FPO, many fear that the firm's fall may drag down banks as well. The RBI has already issued a statement saying that the banking sector remains resilient, while the Finance Secretary also said that the State Bank of India's exposure to Adani is negligible. Now the SBI's chairman Dinesh Khara has himself dismissed concerns, by clarifying that roughly 0.9 per cent of the lender's loan book is exposed to the Adani Group.
He went on to explain that at 0.88 per cent of all loans granted, SBI has provided Rs 27,000 crore to Gautam Adani's conglomerate. Since the Adani Group is accused of pledging inflated stocks to borrow money by the Hindenburg report, Khara also clarified that SBI hasn't given any loans against the firm's shares. He added that the loans were given against cash-genertaing assets and businesses, and hence they aren't concerned about the debt being serviced.
Maintaining that the Adani Group hasn't made any requests for refinancing, Khara added that the conglomerate has an excellent record of repaying loans.
