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The Punjab National Bank has an exposure of around Rs 7 billion in Adani Group companies. The Punjab National Bank has a total exposure of Rs 70 billion to the Adani Group, but there are currently no concerns about these accounts, the managing director and managing director of the public lender said on Monday. Last week, US short seller Hindenburg Research raised concerns about Adani Group's debt levels and use of tax havens. Adani Group said that it complies with all local laws and has made the necessary regulatory disclosures.
"Of the Rs 70 billion, around Rs 25 billion is related to Adani's airport business," PNB CEO Atul Kumar Goel told reporters during a virtual press conference after the quarterly results of the company.
"Whatever exposure we have, it's backed by cash flow."
However, the bank is closely monitoring developments in the news flow around Hindenburg's research report, Goel said.
The bank did not make any loans to Grupo Adani by pledging shares, it added.
The Punjab National Bank reported a 44% decline in net profit for the October-December quarter due to higher bad debt provisions.
The quality of the lender's assets has improved, with a gross NPL ratio of 9.76% at the end of December, compared to 10.48% at the end of the previous quarter.
Its net delinquency ratio stood at 3.30% at the end of December.
Goel said the bank was targeting a gross NPA ratio of around 9% and a net NPA ratio of 3% by the end of March. The bank is targeting 12-13% credit growth and 8-9% deposit growth by 2022-23.
