Total exposure of five State-run general insurers in Adani group at ₹347 crore: MoS Finance Bhagwat Karad

Union Minister of State for Finance Bhagwat Kishanrao Karad. File
| Photo Credit: The Hindu

Five State-run general insurance companies have a total exposure of ₹347.64 crore, or 0.14% of their total assets under management (AUM), in Adani group of companies, Finance Ministry said on February 13.

In reply to a question on details of money lent by banks and financial institutions to the Adani group, the Minister of State for Finance Bhagwat Karad said in a written reply to the Lok Sabha that the RBI Act prohibits disclosure of credit information submitted by a bank.

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With regard to exposure by insurance companies, Mr. Karad said the State-run Life Insurance Corporation of India (LIC), on January 30, said that LIC’s total holding under equity and debt is ₹35,917.31 crore as on December 31, 2022, in Adani group of companies.

The exposure in the Adani group is 0.975% of LIC’s total AUM at book value of ₹41.66 lakh crore.

“As per data received from Public Sector General Insurance companies, namely New India Assurance Company Limited, United India Insurance Company Limited, National Insurance Company Limited, Oriental Insurance Company Limited and General Insurance Corporation of India, total exposure in Adani Group of Companies as on January 31, 2023 is ₹347.64 crore which is 0.14% of the total AUM of all the five companies,” Mr. Karad said.

With regard to other financial institutions — Exim Bank, Small Industries Development Bank of India, National Housing Bank, National Bank for Financing Infrastructure, National Bank for Agriculture and Rural Development, Mr. Karad said they are bound by provisions of the concerned Acts, and are prohibited from divulging any information relating to their constituents.

Stocks of the Adani group companies had taken a beating, losing billions of dollars in market value, after US-based activist short-seller Hindenburg Research in a report dated January 24 made a litany of allegations, including fraudulent transactions and share price manipulation at the Gautam Adani-led group.

The Adani group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.