Banks' exposure to the Adani Group - RBI knows it all
This is mainly due to concerns over the Group's high leverage and its impact on the banking sector.
Along with the Adani Group stocks since January 24, some of the banks like State Bank of India, and Bank of Baroda saw a correction in share price amidst concerns over their exposure to the conglomerate.
Despite these banks coming out and clarifying their exact exposure, there was a niggling worry that some of these banks like SBI and Bank of Baroda, have seen international loans increase by $18-19 billion over the last couple of years.
There was a worry that that these loans are not getting included as part of the exposure.
CNBC-TV18 learns from sources across the banking sector indicates that whatever data the Reserve Bank of India has, includes the banks' investment in their international book, investment book in case they bought any bonds and their clean loans to the Adani Group.
So, all kinds of possible exposure is included, when the RBI asks this data and this includes NBFCs and the data banks have told CNBC-TV18 when questioned in television interactions. SBI's exposure to the Adani Group, which, according to them is 0.9 percent of their loans, includes all possible exposure.
The Adani Group, which has diverse business interests in sectors such as energy, infrastructure, and ports, has been the subject of scrutiny by investors in recent times. This is mainly due to concerns over the Group's high leverage and its impact on the banking sector.
Investors are less worried about the exposure itself because of the group's proven ability to raise money when it comes to it.
(Edited by : Hormaz Fatakia)
First Published: Mar 3, 2023 3:35 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Election 2024: Phase 5 voting concludes with over 57% voter turnout, experts weigh in on key battles
May 20, 2024 11:07 PM
BJP holds meeting in Delhi as polling underway for 5th phase
May 20, 2024 4:21 PM
UP Police arrests man after viral videos shows him voting multiple times
May 20, 2024 2:18 PM