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NEW DELHI: Punjab National Bank (PNB) has a total exposure of 70 billion rupees ($859.30 million) to Adani Groupbut it is not a matter to worry, managing director Atul Kumar Goel said on Monday.
Addressing a press conference after the company’s quarterly results, Goel said that the bank is keeping a close watch on situation developing following the damning report by US-based short seller Hindenburg Research.
“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.
“Of those Rs 7,000 crore, only Rs 42 crore is an investment in bonds and the rest is a loan,” he added.
Last week, in its 32,000-word report, Hindenburg Research had alleged various kinds of fraud and accounts manipulations by Adani Group companies over the years. The Adani Group denied all charges and threatened to sue the US firm.
The group likened the allegations made by Hindenburg Research to a “calculated attack” on India, its institutions and growth story, saying the allegations are “nothing but a lie”.
“Needless to say that Hindenburg has created these questions to divert the attention of its target audience while managing its short trades to benefit at the cost of investors,” the group said. The group said that at various points in the report, it was clear that Hindenburg Research didn’t have a good understanding of the Indian legal system, the accounting practices and how the fund-raising processes work in the Indian capital market.
Addressing a press conference after the company’s quarterly results, Goel said that the bank is keeping a close watch on situation developing following the damning report by US-based short seller Hindenburg Research.
“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.
“Of those Rs 7,000 crore, only Rs 42 crore is an investment in bonds and the rest is a loan,” he added.
Last week, in its 32,000-word report, Hindenburg Research had alleged various kinds of fraud and accounts manipulations by Adani Group companies over the years. The Adani Group denied all charges and threatened to sue the US firm.
The group likened the allegations made by Hindenburg Research to a “calculated attack” on India, its institutions and growth story, saying the allegations are “nothing but a lie”.
“Needless to say that Hindenburg has created these questions to divert the attention of its target audience while managing its short trades to benefit at the cost of investors,” the group said. The group said that at various points in the report, it was clear that Hindenburg Research didn’t have a good understanding of the Indian legal system, the accounting practices and how the fund-raising processes work in the Indian capital market.
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