LIC, SBI Exposure To Adani Group Within Permissible Limits: Finance Minister Nirmala Sitharaman

India.com reported on February 3 that the Reserve Bank of India has asked local banks for details of their exposure to the Adani group of companies.

New Delhi: Union Finance Minister Nirmala Sitharaman has said that the exposure of big lenders such as Life Insurance Corporation (LIC) and State Bank of India (SBI) to the crisis-ridden Adani Group is well within the permissible limits as stated by these lenders.

“They are not overexposed. Their exposure is very well within permitted limits,” said Sitharaman in an interview with Network18 on 3 February.

The plunge in the shares of Adani Group companies following allegations by Hindenburg Research raised concerns about banks’ exposure to the group. LIC managing director and CEO Siddhartha Mohanty had earlier said that the insurance company is positive on the investments in the Adani group.

“Adani investments are within our prudent norms, “adding, “We talk to companies that we invest in as a routine,” said Mohanty while speaking to CNBC-TV18. Bloomberg reported that SBI is concerned has around Rs 21,000 crore exposure to Adani Group companies.

India.com reported on February 3 that the Reserve Bank of India has asked local banks for details of their exposure to the Adani group of companies.