The Adani Group logo is seen on the facade of one of its buildings. (Source: Amit Dave/Reuters)
3 years ago
Feb 02, 2023
Banks' exposure to the Adani Group companies has not created any credit quality concerns as all the group companies are generating strong cash flows, according to bankers.
In a filing to Abu Dhabi Securities Exchange, IHC confirmed that the funds invested in Adani Enterprises' Rs 20,000-crore FPO was returned to its bank account
IHC said it was duly informed about the Adani Enterprises' decision to roll back the fully-subscribed offer.
PNB's funded exposure stands at Rs 6,300 crore, non-funded at Rs 700 crore, MD and CEO AK Goel had said in a recent interaction.
Exposure toward Adani Group's airport business is at Rs 2,500 crore, he had said.
"All exposures are backed by cash flows, no exposure against shares. We have no worries as on date with regard to our exposure to the group," Goel assured. "We will be keeping watch on all developments."
Movements in the equity market have no impact on credit quality, a State Bank of India official told BQ Prime.
"SBI exposure is backed by cashflows, and we have good visibility on the future cash flows," the official said on the condition of anonymity. All Adani Group assets are generating strong cash flow, the official said.
While the follow-on public offering event might impact future projects, it has no immediate impact on the bank, the official said.
The regulator has sought details in the normal course of business.
