(Reuters) – India’s Axis Bank on Saturday said its exposure to Adani Group entities stood at 0.94% of its net advances on Dec. 31, adding that it remained comfortable with its exposure.
“Our exposure to Adani Group is primarily to the operating companies in the Ports, Transmission, Power, Gas Distribution, Roads, Airports etc,” the bank said.
The Adani Group, led by billionaire Gautam Adani, is reeling from a U.S. short-seller’s scathing report in January that has cratered its shares, prompted calls from opposition lawmakers for a wider probe and the central bank to check on banks’ exposure to the conglomerate.
State Bank of India, the country’s largest lender, said on Friday it has no concerns so far regarding its exposure to the Adani Group and that any further financing to the conglomerate’s projects would be “evaluated on its own merit”.
SBI’s total exposure to the conglomerate was 0.9% of its total loan book, or around 270 billion rupees ($3.30 billion), the bank’s Chairman Dinesh Kumar Khara said.
The crisis at Adani Group was triggered by last month’s report by Hindenburg Research that accused the conglomerate of stock manipulation and unsustainable debt. Adani Group has rejected the criticism and denied wrongdoing in detailed rebuttals.
(Reporting by Jaiveer Shekhawat and Kanjyik Ghosh in Bengaluru; Editing by Frances Kerry)
