Adani Group: Axis Bank’s statement came amid the Hindenburg controversy, has given so many loans to Adani Group
Private sector bank Axis Bank said on Saturday, February 4, that its loan given to the troubled Adani Group is about 0.94 percent of the total loan book. In a communication sent to the stock exchanges, the bank said, “We are comfortable with the loan extended to Adani Group”.
Private sector bank Axis Bank said on Saturday, February 4, that its loan given to the troubled Adani Group is about 0.94 percent of the total loan book. The bank said in a notification sent to the stock exchanges, “We give loans to any company based on its cash flow, security, and ability to repay its liabilities, according to the loan assessment framework of the bank. On this basis, we have given Adani Group Are comfortable with the loan taken. Axis Bank also informed that it has given loans mainly to Adani Group companies operating in sectors such as ports, transmission, gas distribution, and airports.
The bank reported that fund-based outstanding as a percentage of net loans stood at 0.29 percent, while non-fund based outstanding stood at 0.58 percent. On the other hand, according to the data till 31 December 2022, the investment is 0.07 percent against the bank’s net debt. Axis Bank said it has a strong balance sheet with standard asset coverage of 1.53 percent as on December 31, 2022.
Before Axis Bank, the country’s largest bank SBI had also issued a statement regarding its loan given to Adani Group. SBI had told that it has only Rs 27000 crore in Adani group companies which is 0.9 percent of its loan book. At the same time, he also denied any concern related to Adani Group’s debt.
The Reserve Bank of India (RBI) had also issued a statement on the Adani Group’s crisis a day earlier. RBI had said that the banking sector remains strong and stable. After this assurance from RBI, the concern created in recent days about the exposure of banks to Adani Group has been reduced.
Let us tell you that there was a sharp decline in the shares of Adani Group last week. The decline came after a report from Hindenburg, a US short-seller firm, alleged manipulation of the group’s accounting. The fall in shares of Adani Group was so sharp that it had to withdraw its proposed offer of Rs 20,000 crore.
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