Indian banks’ exposure to Adani group ‘insufficient’ to pose credit risk: Fitch

The exposure of Indian banks to the embattled Adani Group is “insufficient in itself” to present a substantial risk to the credit profiles of these lenders, Fitch Ratings said in a note on Tuesday.

Investors have been worried about various banks’ exposure to the group ever since late January when US-based short-seller Hindenburg Research alleged improper use of offshore tax havens and stock manipulation by the conglomerate. The group has rejected the criticism and denied any wrongdoing.

Fitch estimated that loans to all Adani group entities generally account for 0.8 per cent-1.2 per cent of total lending for Indian banks rated by the agency, equivalent to 7 per cent-13 per cent of total equity.