SBI granted Adani Groups loans of INR 21000 crore, which is half of the maximum allowed by rules

According to a Bloomberg report citing close people familiar with the subject, India’s largest state lender, State Bank of India (SBI), has made loans to the Adani Group of companies totaling up to INR 21,000 crore.

In-depth details about SBI granted Adani Groups loans of INR 21000 crore, which is half of the maximum allowed by rules

According to the report, the SBI’s loans to Adani enterprises are roughly half of what the laws allow. According to the study, Adani Group received more than INR 1600 crore of the total sum through SBI’s international units.

According to previous reports, SBI chairman Dinesh Kumar Khara stated that there is no immediate threat to SBI’s funding to Adani because the Adani Group entities were servicing the debts.

“Our exposure is to physical assets, and they are generating adequate cash flow. We have not seen any form of default from this firm in the past, and we do not expect to have any issue because the assets are generating extremely solid cashflow,” Khara told Times Network.

According to the article, other banks are equally optimistic about lending to the Adani company. Last month, Punjab National Bank CEO Atul Goel stated that the bank’s exposure to Adani firms was INR 7000 crore. A third of it went to Adani’s airport company, which pays back the full advance. According to an exchange filing, IDFC First has exposure to Adani equal to 0.1% of its loan book, while IndusInd has 0.5% of its INR 29 lakh crore loan book, which is more than INR 15,000 crore, lent to the conglomerate.

Earlier on Thursday, Reuters reported that the Reserve Bank of India had requested information about PSU banks’ exposure to the Adani Group of firms. The RBI is looking for information on collateral used to underpin loans as well as any indirect exposure banks may have, according to Reuters, citing sources.