• Wednesday, March 22, 2023


India’s central bank seeks details on local banks’ Adani Group exposure

Gautam Adani (Photo by INDRANIL MUKHERJEE/AFP via Getty Images)

By: Shubham Ghosh

The Reserve Bank of India (RBI), India’s central bank, has sought information from local banks in detail about their exposure to Adani Group companies, following a massive wipeout worth $100 billion (£985.3 million) in the cumulative market valuation of the Indian conglomerate since last week.

Government and banking sources have confirmed the development, as per a report by news agency Reuters.

The RBI though has not issued any official statement on the matter yet.

Shares of the Adani Group companies continued to witness a downslide on the stock market on Thursday (2) even as Gautam Adani, its billionaire owner, released a video statement to assure investors.

Most of the group’s listed firms touched their lower circuits, plummeting five per cent and 10 per cent, after it called off the secondary share sale of FPO of Adani Enterprises, its flagship company.

Adani Group’s fall on the stock market started last week after Hindenburg Research, a US short seller firm, revealed an explosive report on the conglomerate.

It expressed concerns about the group’s growing debt and accused it of stock manipulation and irregular use of tax havens, among other things.

Meanwhile, India’s market regulator Securities and Exchange Board of India reportedly started looking into the recent crash in Adani Group stocks, India Today reported. The growing scrutiny on the group by regulators could prove to be another blow for the company in the near term, according to experts.

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