SBI has ‘well-manageable’ exposure to embattled Adani Group: CreditSights

MUMBAI (Reuters) – State Bank of India’s exposure to the embattled Adani Group is “well-manageable”, given its strong buffer of provision reserves, CreditSights, a unit of Fitch Ratings, said in a note on Tuesday.

SBI’s total exposure to the conglomerate was 0.9% of its total loan book, or around 270 billion rupees, Chairman Dinesh Kumar Khara said on Friday.

CreditSights pointed out that the country’s largest lender has a provision reserves buffer of around 338 billion rupees ($4.08 billion), or around 1% of net loans.

It added SBI also has the capacity to generate pre-provisioning operating profit, or income before taking into account future bad debt provisions.