RBI Evaluates Banks' Exposure To Adani Group Companies: Report

The Reserve Bank of India (RBI) is reportedly evaluating the details for the major banks who loaned out money to Adani Group companies. Additionally, the central bank is also seeking for the current status of all these loans.

As reported by Moneycontrol, this move is prompted by the major downfall of the Adani entities’ shares. Following the market rout, Adani Enterprises also called off its Rs 20,000 crore share sale.

Jugeshinder Singh, Chief Financial Officer, Adani Group, said in an interview with CNBC TV18 that, the gross debt of the group is $30 billion out of which $4 billion is in cash. Additionally, he also admitted that the debt of $9 billion is from Indian banks out of the total of $30 billion.

Punjab National Bank (PNB) and IndusInd Bank are two of the major banks lending out the money, with PNB having an exposure of Rs 7000 crore to the Adani Group.

Apart from that, in a statement issued to the stock exchanges, IndusInd Bank said that the total loan outstanding towards the group is at 0.49 per cent of the bank’s loan book, with the non-fund outstanding being at 0.85 per cent.

"Majority of the fund and non-fund exposures is working capital requirements and same is secured. There is no other exposure outside of the above, inter alia, including towards any offshore entities, loan against shares or pledge of shares of promoter, investment book instruments etc," said IndusInd Bank.

However, the bank also added that it holds shares as additional collateral its exposures to Adani Group.