Nirmala Sitharaman on Adani crisis: ‘One instance not going to be…’

Feb 03, 2023 03:44 PM IST

Nirmala Sitharaman on Adani crisis: Finance minister Nirmala Sitharaman in an interview with News18 on Friday said the word from the horse's mouth is that the SBI and the LIC have not been overexposed to Adani Group stocks.

Finance minister Nirmala Sitharaman on Friday reacted to the Adani crisis in an interview with News18 where she said India's financial sector is very well regulated and one instance, no matter how much it is talked about globally, is not going to be indicative of how well Indian financial markets have been governed. Citing the statements of the SBI and the LIC, the finance minister said their exposure to Adani Group stocks is very well within the permitted limits and they are still over profit even with the valuation falling.

In her first reaction on the Adani crisis, Nirmala Sitharaman said Indian banking system is in a sound position.
In her first reaction on the Adani crisis, Nirmala Sitharaman said Indian banking system is in a sound position.

"I want to recall the words...coming from the horse's mouth has more credibility. Both SBI and LIC have issued detailed statements. And I know the chairperson or the CMD… he has himself come out and explained how they are not overexposed or whatever they said. And also said, look, we are sitting over profits for the exposure that we have which is well within the limit. That's what I understood. I read it through media," Nirmala Sitharaman said.

They have very clearly said their exposure is well within the permitted limit and they are sitting over profit even with the valuation falling, the finance minister said. "

Indian banking sector today is at a very comfortable level and their position is very sound, Sitharaman said adding that she made the statement with a sense of responsibility. NPAs coming down to a low and recovery is happening and the situation gets reflected when they go to raise money in the market.

On global reactions in the last few days triggered by the Adani crisis, Sitharaman said, "India remains as before, absolutely well-governed with a stable government and a well-regulated financial market. As a result, the investor confidence which existed before shall continue even now. Our regulators are normally very stringent about certain governance practices. One instance should not be going to be indicative."

As Sitharaman was asked for her reaction on the markets which went up on the Budget day during her speech but fell following the Adani rout, the finance minister said, "The Budget has covered all the sections of society. The details took a long time in the preparation for the Budget. I am glad if it's received very well and now it motivates me to now better implement it down to the very last person. The immediate impact of the Budget on the market and subsequent to let's say for whatever reason it traded back.... I think in the next few days the Budget's impact will still continue to hold the markets high."

In a statement issued on January 30, LIC said its total holding under equity and debt is 35,917.31 crore as on 31.12.2022 under Adani group of companies. The total purchase value of equity, purchased over the last many years, under all the Adani group companies is 30.127 crore and the market value for the same as at close of market hours on January 27, 2023 was 56.142 crore.

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