State Bank of India has given loans of as much as Rs 21,000 crore ($2.6 billion) to Adani Group firms said a report on Thursday. This is half of what is allowed under rules, reported Bloomberg quoting a source.SBI’s exposure includes $200 million from its overseas units, said the report. Dinesh Kumar Khara, chairman of SBI, said earlier on Thursday the tumult-hit Adani Group companies were servicing the loans and he doesn’t see an “immediate challenge” to whatever the bank has lent so far.
On Thursday, SBI's scrip on BSE was trading nearly flat at Rs 527.75.Adani Group firms' stocks lost combined market capitalisation of over $100 billion in the past week due to a scathing report by US-based short seller firm Hindenburg Research. Hindenburg Research said it holds short positions in Adani Group companies through US-traded bonds and non-Indian-traded derivative instruments.The seven listed companies of the Adani group have an 85% downside on a fundamental basis due to sky-high valuations, Hindenburg said in the report."Key listed Adani companies have also taken on substantial debt, including pledging shares of their inflated stock for loans, putting the entire group on precarious financial footing," Hindenburg said.Earlier on Thursday, Reuters reported that Reserve Bank of India has asked PSU banks for details of their exposure to the Adani Group of companies.