NEW DELHI: Finance secretary TV Somanathan has informed the exposure of any nationalized banks or insurance companies in Adani Group companies should not cause any concern for depositors, contract holders or investors.
Somanathan told a TV channel on Friday that the exposure of State Bank of India and Life Insurance Corporation in any given company is far below what investors should be concerned about.
The market value of Adani Group companies has fallen below $100 billion following a key US company report last week. Hindenburg Research.
Shares of the group’s flagship Adani Enterprises were repeatedly suspended on Friday as a routine triggered by deepening allegations of accounting fraud.
Shares fell 10% at the open, while Adani Power, Adani Green Energy, Adani Total Gas – in which French giant TotalEnergies has a 37.4% stake – and Adani Transmission were also suspended when they stopped delivering Translate.
However, rating agency Fitch said it did not see an immediate impact on the ratings of Adani entities and their securities.
Moody’s said it is assessing the financial flexibility of institutions rated by the Adani Group following the report.
The issue of exposure of government-controlled organizations such as the SBI and LIC with Adani companies has also been raised by some opposition parties.
Parliament has alleged that public sector investments LIC and SBI in the Adani group were “forced” by the prime minister.
Parliament leader Jairam Ramesh said: “Only an independent investigation will save the LIC, SBI and other institutions forced by the prime minister to invest in the Adani Group.”
The opposition is also demanding the creation of a joint parliamentary committee to look into the Adani issue.
They have alleged that the government is avoiding a discussion in Parliament.
Hindenburg released a damning report alleging financial and accounting fraud by the port-to-energy consortium. The group has denied all allegations and called the report malicious and full of lies.
However, Adani on Wednesday canceled a $2.5 billion stock sale intended to help reduce debt levels – a longstanding concern – restore confidence and expand its shareholder base. Gautam Adani, the group’s president said in a video message, justifying the removal of the FPO.
(With agency input)
Somanathan told a TV channel on Friday that the exposure of State Bank of India and Life Insurance Corporation in any given company is far below what investors should be concerned about.
The market value of Adani Group companies has fallen below $100 billion following a key US company report last week. Hindenburg Research.
Shares of the group’s flagship Adani Enterprises were repeatedly suspended on Friday as a routine triggered by deepening allegations of accounting fraud.
Shares fell 10% at the open, while Adani Power, Adani Green Energy, Adani Total Gas – in which French giant TotalEnergies has a 37.4% stake – and Adani Transmission were also suspended when they stopped delivering Translate.
However, rating agency Fitch said it did not see an immediate impact on the ratings of Adani entities and their securities.
Moody’s said it is assessing the financial flexibility of institutions rated by the Adani Group following the report.
The issue of exposure of government-controlled organizations such as the SBI and LIC with Adani companies has also been raised by some opposition parties.
Parliament has alleged that public sector investments LIC and SBI in the Adani group were “forced” by the prime minister.
Parliament leader Jairam Ramesh said: “Only an independent investigation will save the LIC, SBI and other institutions forced by the prime minister to invest in the Adani Group.”
The opposition is also demanding the creation of a joint parliamentary committee to look into the Adani issue.
They have alleged that the government is avoiding a discussion in Parliament.
Hindenburg released a damning report alleging financial and accounting fraud by the port-to-energy consortium. The group has denied all allegations and called the report malicious and full of lies.
However, Adani on Wednesday canceled a $2.5 billion stock sale intended to help reduce debt levels – a longstanding concern – restore confidence and expand its shareholder base. Gautam Adani, the group’s president said in a video message, justifying the removal of the FPO.
(With agency input)
