Some of India's leading public sector banks said on Friday their exposure to the Adani Group was within the limits prescribed by the central bank, assuaging fears of default risks from their exposure to the conglomerate.
The ports-to-energy conglomerate, helmed by Gautam Adani - one of the world's richest men, has come under attack from U.S. short-seller Hindenburg Research, leading to aThe Reserve Bank of India allows for no more than 25% of a bank's available eligible capital base to be exposed to any one group of connected companies.
"There is nothing alarming about our Adani exposure and we don't have any concerns as of now," Dinesh Kumar Khara, chairman of country's largest lender State Bank of IndiaKhara said the Adani Group hadn't raised any funding from SBI in the recent past and that the bank would take a "prudent call" on any funding request from them in the near future.
The board will take any decision on the bank's exposure to the group only after that, the official said.added that the lender's loans to the Adani group were within permissible limits, while executives at two other private lenders said that they were not yet in "panic mode" but being watchful.
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