Mumbai [Maharashtra], February 3 (ANI): State Bank of India (SBI) chairman Dinesh Khara on Friday said the bank's total exposure amounting to Rs 27,000 crore in Adani Group is 0.88 per cent of its loan book.
Addressing a press conference after announcing October-December quarter earnings, Khara said: "We have lent to Adani (group) for projects having tangible assets and adequate cash. They have met obligations...our total exposure to Adani group is 0.88 per cent as of December 31."Khara added those loans were against assets or businesses that are cash-generating, and the bank does not see any challenge.
"There's no cause for concern for us," he added.
This comment by the SBI chief comes almost a week after a report by a US-based Hindenburg Research, which claimed the Adani Group of having weak business fundamentals, allegations of stock manipulation and accounting fraud, among others.
The report raised concerns about shares of Adani group companies having a possibility of declining from their current levels, owing to high valuations. Following the report, the shares of all Adani Group companies have been consistently declining, though with varying degrees.
In a long response, Adani Group had said on Sunday that the report by Hindenburg Research was not an attack on any specific company but a "calculated attack" on India, its growth story, and ambitions. It added the report was "nothing but a lie". (ANI)