Five lenders to Adani Group and their exposure to the crisis-ridden conglomerate

Adani group stocks cumulatively lost Rs 9.5 lakh crore between January 24 and February 6 (Getty Images)

The Adani group is in throes of the worst crisis in history after US-based short-seller Hindenburg Research alleged irregularities in its books on January 24, setting its shares into a tailspin.

Adani Group share prices fell sharply in the days followed and some foreign banks stopped taking its bonds as collateral for margin loans. India’s banking and stock market regulators issued statements to pacify stakeholders, saying there were no systemic risks.

Union Finance Minister Nirmala Sitharaman, in an interview to Network18, clarified that the exposure of Life Corporation of India (LIC) is well within the permissible limits. In a post-Budget press conference in Mumbai on February 4, she said that the regulators are working and monitoring the Adani Group situation closely.

Lenders to Adani group faced questions on the future of their loans and their repayment status. Five banks, which include some of the biggest public and private sector players, have so far disclosed their exposure to the Adani Group.

SBI

State Bank of India , India's largest lender, in a post-earnings press conference said that its total exposure to the Adani Group stands at Rs 27,000 crore, or 0.8 percent of the overall book. Chairman Dinesh Khara said that there are no challenges concerning the conglomerates' debt servicing abilities.

BoB

Bank of Baroda's exposure to the Adani Group does not rank among the bank's top 10 exposures, Chief Executive Officer and Managing Director Sanjiv Chadha said. Around 30 percent of the bank's exposure is backed by joint ventures with PSU companies, he mentioned.

PNB

Punjab National Bank MD and CEO Atul Kumar Goael said that the lender's total exposure to the group is around Rs 7,000 crore, of which Rs 6,300 crore is funded exposure. Goel said that PNB has an exposure of Rs 2,500 crore for the airport's business.

Axis Bank

One of the largest private sector lenders, Axis Bank, in a statement to the exchanges said that its total outstanding as percentage of net advances to Adani Group companies stood at only 0.94 percent as of December 2022.

The lender further said that it's fund-based outstanding as percentage of net advances was 0.29 percent, non-fund based outstanding as percentage of net advances was 0.58 percent, and investments as percentage of net advances was 0.07 percent.

IndusInd Bank

IndusInd Bank had on the day of the Union Budget said that its total loan outstanding towards the Adani Group is pegged at 0.49 percent of its loan book. The lender clarified that its total non-fund outstanding was 0.85 percent, whereas its loan outstanding against fixed deposits is 0.2 percent of the loan book.

Other than these banks, other companies which have major exposure to the Adani Group include REC, the financial arm of Power Finance Corporation. The company said that it has an exposure of Rs 7,000 crore to Adani Group and sanctions included exposure is of Rs 12,000 crore to the group.