Nirmala Sitharaman, Finance Secretary and banks gave statement on Adani Group crisis, know what these people said
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New Delhi : On the Adani Group crisis, Finance Minister Nirmala Sitharaman said on Friday that India’s financial sector is very well regulated. In an interview given to a TV channel, he said that it does not matter how much is talked about at the global level. This is not an indication of how good Indians are. The financial markets are well regulated. Quoting the statements of SBI and LIC, the Finance Minister said that their investments in Adani Group shares are very well within the permitted limits and they are still more than profitable despite falling valuations.
SBI-LIC still profitable
In an interview to news channel News 18, Finance Minister Nirmala Sitharaman said that the chairman and CMD of SBI and LIC have given detailed statements on this. He has said that his investment in Adani Group is limited and investment has been made within the prescribed limit. He said that SBI and LI have so far made profits by investing in the shares of Adani Group. Market regulators are working well. Investors’ confidence in the Indian stock market is increasing.
Strong position of Indian banking sector
Regarding the attitude of foreign investors on the Indian stock market, Nirmala Sitharaman said that it is normal for investors to change their behavior. The condition of Indian banking sector is strong and the NPA of banks is decreasing and the banks of India are developing rapidly. On privatization of public sector banks, he said that the process is going on. The Indian banking sector is in a comfortable position. They are getting good money from the market.
Stock market volatility is not a matter of concern: Finance Secretary
On the other hand, Finance Secretary TV Somanathan told news agency Bhasha on Friday that the uproar in the stock market due to the steep fall in Adani Group’s shares is just a ‘storm in a teacup’ from a macro-economic point of view. ‘A storm in a tea cup’ is an idiom which means to show anger and concern over a matter which is not important. Somanathan, the senior-most official in the finance ministry, said India’s public financial system is very strong and stock market volatility is not a matter of concern for the government. He said that independent regulators are there to take necessary steps in this regard.
No loan against shares to Adani Group: SBI
At the same time, Dinesh Khara, chairman of the country’s largest lender State Bank of India (SBI), said on Friday that Adani Group’s share in SBI’s total debt is only 0.9 per cent. He said that we do not see any challenge regarding the fulfillment of loan commitments by the Adani Group. No loan was given to the group against the shares.
Our loan given to Adani Group is secured: J&K Bank
Jammu and Kashmir (JK) Bank has said on Friday that its loan given to Adani Group is safe and the bank’s investors need not worry. JK Bank Deputy General Manager Nishikant Sharma said that JK Bank has given a loan of Rs 400 crore to Adani Group for two thermal power plants in Mundra, Maharashtra and Gujarat. He said that we had given a loan of Rs 400 crore for both the projects 10 years ago, which has now reduced to Rs 240 to 250 crore. Payments are being made regularly and both the plants are operated with power purchase agreements. Not a single paisa is outstanding from Adani’s account.
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