Punjab National Bank has sought to allay fears around its exposure to Adani Group entities after the lender’s Managing Director mentioned that the state-owned bank’s ₹7,000 crore total exposure is backed by cash flow and that they have been keeping a “close eye” on how the Hindenburg-Adani saga unfolds.
What Happened?: PNB CEO Atul Kumar Goel told reporters at a virtual press conference after the company’s quarterly results that the bank is not worried over its ₹7,000 crore exposure to the Adani Group, whose listed shares have taken a beating on allegations made in a report by the US-based short-seller Hindenburg Research.
“Whatever the exposure we are having is backed by cash flow,” Goel said on the call, as first reported by Reuters, adding that the bank has not given out loans to the Adani Group by pledging shares.
Goel also said that the bank was keeping a close watch on the emerging situation in the ongoing tussle between Adani Group and Hindenburg Research.
Adani Group on Sunday put out a 413-page response to Hindenburg Research’s scathing report, calling the short-sellers investigation an “attack on India and its independent institutions.”
Hindenburg was quick with its response, stating that Adani Group’s response “predictably tried to lead the focus away from substantive issues” while leading towards a “nationalist narrative.”
Get Ring The Bell, Benzinga India’s weekly briefing. Designed specifically for investors like you.
Price Action: PNB shares traded 3.85% higher at ₹52.50 in early trading on Tuesday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.