PNB’s exposure to Adani Group not a matter of worry, says bank chief

New Delhi [India], January 30 (ANI): Atul Kumar Goel, MD and CEO of Punjab National Bank on Monday said the state-owned bank has an exposure of about Rs 7,000 crore in Adani Group companies.

“PNB has Rs 7,000 crores exposures in 8-9 companies of Adani Group. Our exposure is mostly in Airport business of Adani. I don’t need to worry on the current issue of Adani as most of the exposure is generating money to pay their dues.

We are keeping our eyes on the issue,” Goel said in a virtual press conference after releasing the bank’s October-December 2022 quarter earnings. Of those Rs 7,000 crore, only Rs 42 crore is an investment in bonds and the rest is a loan, Goel said.

Adani Group is in news for the past few days after a US-based firm Hindenburg Research, in a report on January 24, raised concerns about shares of Adani group companies having a possibility of declining from their current levels, owing to high valuations. It also accused the Adani Group of accounting fraud and stock manipulation.

Meanwhile, Adani Group on Sunday responded to the report by Hindenburg Research, saying it was not an attack on any specific company but a “calculated attack” on India, its growth story, and ambitions.

In a 413-page response to the Hindenburg Research, the Adani Group has attacked Hindenburg as “an unethical short seller”. It added the report was “nothing but a lie”.
Meanwhile, the state-owned bank reported that its net profit declined 44 per cent year-on-year to Rs 628.8 crore in the December quarter