Srinagar, Feb 3: Jammu and Kashmir Bank and State Bank of India on Friday sought to assure their customers that their loans to the Adani Group were secure and that their investors had nothing to worry about.
J&K Bank, which has an exposure of nearly Rs 250 crore in the Adani Group, said the bank investors have nothing to worry as its loans to the embattled business group are secured.
“Our loans to Adani Group are secured against the assets of the projects that were financed by JK Bank,” JK Bank Deputy General Manager Nishikant Sharma told PTI.
Sharma said J&K Bank had given a loan of Rs 400 crore to Adani Group to finance two thermal power projects – one in Maharashtra and one in Mudra, Gujarat.
“When we financed the two projects 10 years ago, our exposure was Rs 400 crore, which has now come to Rs 240 crore to Rs 250 crore. The payments are regular and both the power projects are operational with power purchase agreements in place. The bank has the first charge on their sale. Not a single penny is overdue from the Adani account,” he added.
Meanwhile, the country’s largest lender SBI on Friday said its overall exposure to the Adani Group is at 0.88 per cent of the book or around Rs 27,000 crore.
SBI chairman Dinesh Khara said the bank does not envisage the embattled ports-to-mining group facing any challenge to service its debt obligations and stressed that SBI has not given any loans against shares to the group.
Lending to Adani Group projects is with regard to ones having tangible assets and adequate cash flows, Khara said, adding that the group has an excellent repayment record.
