The country’s largest lender, State Bank of India, said on Friday that its exposure to the Adani Group was well below the Reserve Bank of India’s (RBI’s) Large Exposure Framework and was secured by cash generating assets.
The statement comes as the Adani Group lost Rs 4.18 trillion in market capitalisation in the last two trading sessions after a report by US-based investment research firm Hindenburg Research alleged that the group was engaged in “a brazen stock manipulation and accounting fraud scheme”. Hindenburg Research alleged that there was 85 per cent downside in group stocks “purely on fundamental valuations”.
The conglomerate had called the report “maliciously mischievous, unresearched”. It has said that it is “evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research”.
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