The exposure of Indian banks to the overall lending of the Adani Group, according to Chairman Gautam Adani, is “just 32%.”
When questioned about worries that banks, especially those in the public sector, have significant exposure to the debt of the Adani Group, Adani said: “Without first checking the facts, people voice their concerns. The truth is that 86% of our overall debt nine years ago came from loans from Indian banks. However, as of right present, only 32% of our overall lending is exposed to Indian banks.”
Adani claimed that overseas debts now account for 50% of the conglomerate’s borrowing.
Check out how Gautam Adani feels about ranking third in the world in terms of wealth.
“We now borrow over 50% of our money through foreign bonds. You will understand that foreign investors are quite savvy and subscribe after careful consideration and in-depth research “Raj Chengappa, managing editor of India Today Group, was informed by Adani.
The 60-year-old Adani has recently added airports, data centres, cement, aluminium, and city gas to his coal-to-ports empire.
In response to a CreditSights analysis that claimed the Adani Group was overleveraged, the group published a 15-page letter in September.
In March 2022, the group’s gross debt stood at Rs 1.88 trillion while its net debt, which takes into account cash on hand, is Rs 1.61 trillion. The conglomerate had stated in its response to CreditSights that whereas borrowing from PSBs made up 55% of the total debt of the group entities in 2015–16, it would make up 21% of the total debt in 2021–22.
Private banks accounted for 31% of loans in FY16, but that percentage has since dropped to 11%. According to the Adani Group, funds obtained through bonds have increased from 14% of all loans to 50% as of late.