Ajit Karn
PNB has a total exposure to Adani Group of 70 billion rupees ($859.30 million), but there is now no cause for concern, the state-run lender’s managing director and chief executive said on Monday.
Hindenburg Research, a short-seller in the United States, raised worries about Adani Group’s debt levels and use of tax havens last week. Adani Group has said that it is in compliance with all local laws and has made all required regulatory disclosures.
“Around 25 billion rupees of the 70 billion rupees is related to Adani’s airport business,” PNB CEO Atul Kumar Goel told reporters following the company’s quarterly results in a virtual news conference.
“Any exposure we have is backed up by cash flow.”
However, Goel stated that the bank is keeping a “tight eye” on the developments around Hindenburg’s research study.
He noted that the bank had not made any loans to the Adani Group by pledging shares.
Due to increased provisions for bad loans, Punjab National Bank reported a 44% decline in net profit for the October-December quarter.
The lender’s asset quality improved, with the gross non-performing asset ratio falling to 9.76% at the end of December from 10.48% at the end of the previous quarter.
As of the end of December, its net NPA ratio was 3.30%.
Goel stated that the bank is aiming for a gross NPA ratio of roughly 9% and a net NPA ratio of 3% by the end of March. For 2022-23, the bank anticipates credit growth of 12-13% and deposit growth of 8-9%. $1 equals 81.4620 Indian rupees
Also read:- How Microsoft’s Project ELLORA is assisting minor languages
“PNB has exposures of Rs 7,000 cr to 8–9 Adani Group entities. Adani’s Airport business is where the bulk of our risk lies. As most of the coverage is making money to pay their bills, I don’t have to worry about the current issue with Adani. To that end, we will continue to monitor the situation “This, as stated by Goel.
Punjab National Bank (#PNB) which has about Rs 7,000 crore exposure in Adani Group entities on Monday said it is keeping a close watch on situation developing following the damning disclosures by Hindenburg Research
— Stocks Ki Baat (@stockskibaat) January 30, 2023
