Adani exposure safe, no default risk: Axis Bank

Axis Bank said there is no risk of default and that all its debt exposure is to cash-generating assets and operating companies. The loans amount to less than 1% of the lender’s total advances, Axis Bank said. Earlier, the

and , too, defended their Adani Group exposures.

“We extend credit, basis comfort on cash flow, security, and repayment capability of obligors as per the Bank’s credit assessment framework,” the lender said in an exchange filing on Saturday. “We remain comfortable with our exposure to Adani Group basis the same.

Our exposure to Adani Group is primarily to the operating companies in the Ports, Transmission, Power, Gas Distribution, Roads, and Airports.”

According to the filing, the lender’s total exposure to the Adani Group is 0.94% of its net advances. Several banks have issued clarifications regarding their exposure to the Adani Group.State Bank of India had said last week that it has an exposure of Rs 27,000 crore to cash-generating assets of the Adani Group and that it doesn’t foresee any issue in debt repayment. “We have lent to Adani (group) for projects, which are tangible assets and which have adequate cash generation. They have been able to meet their obligations. The bank’s exposure is around 0.88% of the total loan book,” Dinesh Khara, chairman of , said last Friday.

Bank of Baroda has said that it has a total exposure of Rs 5,380 crore to the group “It (exposure) is also spread over a large number of companies,” Sanjiv Chadha,CEO of Bank of Baroda had said. “However, as a percentage of our balance sheet, this exposure has come down over the past three years.”