The exposure of the State Bank of India and the Life Insurance Corporation in any company is far below the level where it should concern the investors, Somanathan told a TV channel on Friday.
Adani Group companies’ market value has eroded to less than $100 billion after a critical report last week by American firm Hindenburg Research.
Shares in the group’s flagship firm Adani Enterprises were repeatedly suspended on Friday as a rout triggered by allegations of accounting fraud deepened.
The shares fell 10 percent at the open, while Adani Power, Adani Green Energy, Adani Total Gas- in which French giant TotalEnergies has a 37.4 per cent stake- and Adani Transmission were also suspended when they hit their trading stops.
However rating agency Fitch said it sees no immediate impact on ratings of Adani entities and their securities.
Moody’s said it is assessing Adani Group rated entities’ financial flexibility in the aftermath of the report.
The issue of exposure of government controlled entities like SBI and LIC to Adani companies has also been raised by several opposition parties.
The Congress has been alleging that the investments made by public sector LIC and SBI into the Adani group have been “forced” by the prime minister.
“Only an independent investigation will save LIC, SBI and other institutions forced by the prime minister to invest in the Adani Group,” Congress leader Jairam Ramesh said.
The opposition is also demanding constitution of a joint parliamentary committee to look into the Adani issue.
They have alleged that the government is avoiding a discussion in Parliament.
Hindenburg came out with a damning report alleging financial and accounting fraud by the ports-to-energy conglomerate. The group has denied all charges and called the report malicious and full of lies.
However Adani on Wednesday cancelled a $2.5-billion stock sale meant to help reduce debt levels- long a concern- restore confidence and broaden its shareholder base. Investors’ investors are “paramount,” group chairman Gautam Adani said in a video message, justifying scrapping of the FPO.
(With agency inputs)
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