SBI chairman sees no threat to books from Rs 27,000-cr exposure to Adani Group

State Bank of India Chairman Dinesh Kumar Khara

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26 Aug, 2025 12:21

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State Bank of India’s (SBI) Chairman Dinesh Khara, said the lender’s exposure to the Adani Group is pegged at Rs 27,000 crore or 0.8 to 0.9 percent of its loan book and repayments are on track, implying that there is no concern as of now.

“We have lent to Adani for projects which have tangible assets and have adequate cash collections. They are able to meet obligations. It is only 0.8-0.9 percent of our loan book,” Khara said at the press conference after announcing the bank's third quarter results.

Various companies of the Adani Group witnessed a massive fall in their valuation with their shares tanking between 20 to 35 percent.

Concerning the challenges with the loans, Khara said that SBI doesn't see any challenges in servicing the loans.

“We have not extended any loan against shares. The stock price will not impact our loans. As I mentioned, it is all against assets that are cash generating and have an excellent track record in repayments,” Khara said.

“We have not started any special engagement with the group yet. For the time being there is no concern,” Khara said.

Other banks' exposure

Bank of Baroda, another public sector bank, denied sharing the amount of its loan book exposed to the Adani Group. But Sanjiv Chadha, Managing Director, Bank of Baroda, on February 3, in a press conference after announcing the lender's quarterly results, said that the bank makes loans based on value sheets rather than shares.

"We give term loans or working capital, so it is more secure, and the banks' situation is different. I truly accept this when we give a loan to some company and there's an issue that can be an issue for us too. However, one company's problem had little impact. Banking for the corporate sector is at its best," Chadha said.

Concerning its exposure to the Adani Group, private sector lender IndusInd Bank in a statement on February 1 clarified its exposure.

In a statement it said: "Bank's exposure towards this Group is as follows: 1. The total loan outstanding towards the Group is at 0.49 percent of the bank's loan book. 2. The total non-fund outstanding towards the Group is at 0.85 percent of the loan book. 3. The loan outstanding against fixed deposits of the Group is at 0.20 percent of the loan book. 4. Majority of the fund and non-fund exposures is working capital requirements and same is secured. 5. There is no other exposure outside of the above, inter alia, including towards any offshore entities, loan against shares or pledge of shares of promoter, investment book instruments etc. However, we hold shares as additional collateral for some of the exposures mentioned above, over and above the primary security provided."