People wait to cross the road past the Adani Group logo at a roundabout on Ring Road in Ahmedabad on February 2, 2023. Photo Credit: Reuters
The Reserve Bank of India (RBI) has sought details from banks regarding their exposure to the Adani group, a day after the group withdrew Adani Enterprises’ Rs 20,000-crore follow-on public offer (FPO), banking sources said. took. Fall in its share price.
On Wednesday, Swiss lender Credit Suisse stopped accepting bonds as collateral for margin lending by Adani group companies.
The past week has been tough for the diversified conglomerate, ever since US-based short seller Hindenburg Research made several allegations about the group’s operations, calling it the ‘biggest corporate thief ever’. The Ahmedabad-headquartered group has denied all the allegations.
Banking sources said the RBI regularly gets access to large corporate borrowers of banks as part of the Central Repository of Information on Large Credit (CRILC) data base.
Banks sometimes lend against the pledged securities and a sharp fall in the price of equity shares of the 10 listed entities of the Adani Group may reduce the value of the pledged securities accordingly.
Bank stocks have been under selling pressure since the release of the Hindenburg Research report on January 24 as investors worried about the impact of the crisis on banks’ books.
The country’s largest lender SBI has said its exposure to the Adani group was fully secured by cash-generating assets.
Last week, Life Insurance Corporation (LIC) disclosed exposure to Adani Group’s debt and equity to the tune of ₹36,474.78 crore and said the amount was less than one per cent of its total investments.