The State Bank of India said the Adani group owes it Rs 27,000 crore, which is 27 per cent of its loan book. SBI chairman Dinesh Khara also said the country’s largest lender has not given any loans against shares to the beleaguered group.
Khara was speaking to the press after the bank reported better than expected numbers for the third quarter ended December 31, 2022. It posted its highest ever quarterly profit at Rs 14,205 crore — a rise of 68.47 per cent over Rs 8,432 crore in the same period of the previous year.
Core income of India’s No. 1 bank rose 24 per cent to Rs 79,860 crore against Rs 69,678 crore in the year-ago period.
The Adani group’s debt repayment ability has come into question after flagship Adani Enterprises called off a Rs 20,000 crore follow-on public offering (FPO) and its stocks lost more than $100 billion after Hindenburg Research made damaging allegations.
Khara said the lender does not envisage any challenge in terms of the group servicing its debt. He added that the conglomerate also has an excellent repayment record. Replying to a question on whether the group is changing its diligence method while considering fresh loan proposals from the conglomerate, he added SBI will continue to insist that the company brings the necessary equity.
“Unless the equity is seen, the amount is not released. It is not so that we are waiting for any equity. Going forward as well, each of such proposals will be evaluated on its own merit. It is a decision with credit committees,” he said.
Amid the “war for deposits” in the system, the bank posted a slower deposit growth at over 8 per cent, and Khara said it has already activated multiple measures to push up the number. He also added that it carries excess government securities holdings of over Rs 3 lakh crore, which can be deployed, and made it clear that it will not engage in a price war in such a way that it has to compromise on the NIMs.
SBI’s other income rose to Rs 11,468 crore for the reporting quarter against Rs 8,673 crore in the year-ago period. It reported a gross non-performing assets ratio of 3.14 per cent against 4.50 per cent in the year-ago period and 3.52 per cent in the quarter-ago period.
