State Bank of India’s (SBI) loan exposure to the Adani companies is three times that of what Punjab National Bank has lent but falls well within the limit of what is allowed by the Reserve Bank of India.

The  country’s largest lender has given loans of as much as $2.6 billion (Rs 21,338 crore) to companies in the Adani conglomerate, or about half of what is allowed under rules, Bloomberg reported, 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 Adani Group companies were servicing the loans and he doesn’t see an “immediate challenge" to whatever the bank has lent so far.

Earlier, the RBI had asked lenders for details of their exposure to the conglomerate following a rout in group companies’ stock prices. 

The RBI was seeking details including details of collateral being used to back loans and any indirect exposure banks may have.

Adani firms have lost $100 billion in stock values in the past week since US short-seller Hindenburg Research alleged that the ports-to-energy-to-cement conglomerate had engaged in “brazen stock manipulation and accounting fraud”. The research report raised concerns about Adani Group’s high debt levels and the alleged use of offshore entities in tax havens.

Late Wednesday evening, the group cancelled its follow-on public offer (FPO) despite the share sale to raise Rs 20,000 crore being fully subscribed. 

On Thursday, the National Stock Exchange (NSE) placed Adani Enterprises, Adani Ports and Special Economic Zone (APSEZ), and Ambuja Cements under short-term additional surveillance measure (ASM) framework. Effective 3 February, these companies will shift to a category of stocks that require up to 100% trading margins and are subject to greater scrutiny to curb short-selling.

Meanwhile, wealth units of Credit Suisse Group AG and Citigroup Inc. have stopped accepting securities from the Adani group as collateral for margin loans to their clients.

In a communication to the exchanges, IDFC First Bank said on Thursday that its funded outstanding exposure to the Adani Group was less than 0.1% of its total loans. The private lender did not have any exposure to offshore entities in the Adani group or against the shares of the group companies.

IndusInd Bank said its exposure to the group accounted for 0.5% of its loan book. As on 31 December 2022, the bank’s loan book was Rs 2.7 trillion. 

Earlier, Punjab National Bank managing director and CEO Atul Goel told reporters that the state-run lender had an exposure of Rs 7,000 crore to Adani Group. About Rs 2,500 crore of it was to Adani’s airport business and cash-flows back the entire advances. “We are closely monitoring the situation but currently there is no worry pertaining to those accounts,” he said.