SBI Granted Loans Worth INR 21,000 Crore To Adani Groups, Half Of What Allowed Under Rules: Report The report also claimed that more than INR 1600 crore of the amount was granted to Adani Group through SBI's overseas units
By Teena Jose
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India's largest public lender State Bank of India (SBI) has given loans worth as much as INR 21,000 crore to the Adani Group of companies, according to a Bloomberg report, citing close sources aware of the matter.
According to the report, the SBI's loans to Adani firms are about half of what is allowed under the rules. The report also claimed that more than INR 1600 crore of the amount was granted to Adani Group through SBI's overseas units.
As per earlier reports, SBI chairman Dinesh Kumar Khara, has said that there is no immediate challenge to its lending to Adani since the Adani Group firms were servicing the loans.
"Our exposure is to the physical assets and they are having adequate cash generation and we have not experienced in the past any kind of a default from this entity and we don't expect to have any challenge because the assets are having very robust cashflow," Khara told Times Network.
As per the report, other banks are also confident about their loans to the Adani group. Last month, Punjab National Bank's chief executive Atul Goel said that Punjab National Bank's exposure to Adani companies was INR 7000 crore. About a third of it was to Adani's airport business and cash-flows back the entire advances. Among private players, IDFC First has exposure to Adani equal to 0.1% of its loan book according to an exchange filing, while 0.5% of IndusInd's INR 29 lakh crore loan book, which is more than INR 15,000 crore is lent to the conglomerate.
Earlier on Thursday, Reuters reported that the Reserve Bank of India has asked PSU banks for details of their exposure to the Adani Group of companies. Information being sought by the RBI includes details of collateral being used to back loans and any indirect exposure banks may have, Reuters reported quoting sources.
