Search
Kotak Bank has small exposure to Adani
March 10, 2023
Mumbai, Private sector lender Kotak Mahindra Bank has a “small exposure” to the embattled Adani Group which has been made in line with its credit philosophy, a senior official has said. Paritosh Kashyap, president and head for wholesale banking at Kotak Mahindra Bank, said the issues surrounding Adani Group are more of a “capital market and valuations issue and not a credit issue.”
“We have a small exposure to the group. We do business with every corporate in the country, and our exposures are in line with our credit philosophy and size of our balance sheet,” Kashyap told PTI in an interaction.
He said operating companies in the group have “reasonable leverage”, coupled with strong profitability and balance sheets.
It can be noted that a report by the US short-seller had called Adani as the biggest con in corporate history, making wide-ranging allegations on governance practices among other aspects to say that the stocks are overvalued by 85 per cent.
The publishing of the report in late January led to a rout in Adani group’s listed entities, and also made investors nervous about banks initially as they feared a ripple effect to play out on the banks who have exposure to the group.
Important Links:
- 4-IN-1 Professional Diploma in Banking, Financial Services & Insurance (PDBFSI): https://ask.careers/courses/4-in-1-professional-diploma-in-banking-financial-services-insurance-pdbfsi/
- Mumbai: https://ask.careers/cities/mumbai/
- TSCFM: https://ask.careers/institutes/tscfm/
