Domestic banks and NBFCs have Boosted their Exposure to the Adani Group to 36% of their Total Debt

As of March 31, 2024, Indian lenders, including domestic banks and non-banking financial companies, have extended Rs 88,100 crore to the Adani Group, representing a portion of its total debt of Rs 2,41,394 crore.

Article: Domestic banks and non-banking financial companies (NBFCs) now represent 36.5% of the Adani Group’s total debt, indicating a substantial increase in their exposure to the conglomerate. Indian lenders have provided Rs 88,100 crore to the Adani Group out of its total debt of Rs 2,41,394 crore as of March 31, 2024. This is an increase from Rs 70,213 crore the previous year when their share was 31% of the group’s total debt of Rs 2,27,248 crore.

Debt from the domestic capital market also rose to Rs 12,404 crore by March 2024, up from Rs 11,562 crore the previous year. In contrast, debt from global banks slightly decreased to Rs 63,296 crore from Rs 63,781 crore, while debt from global capital markets fell to Rs 69,019 crore from Rs 72,794 crore during the same period.

Despite a 6% year-on-year increase in debt, the Adani Group saw a 45% rise in operating profit, reaching Rs 82,917 crore in FY24. This growth was largely driven by the infrastructure segments of Adani Enterprises, particularly airports, green hydrogen, and data centres. The rise in debt is linked to capital expenditures in the group’s airports and green energy ventures, which are part of a diverse portfolio that includes infrastructure, ports, metals, building materials, utilities, and fast-moving consumer goods. Major lenders to the Adani Group include domestic banks such as State Bank of India, Bank of Baroda, Union Bank of India, Canara Bank, HDFC Bank, Axis Bank, and ICICI Bank, although none have publicly addressed their increasing exposure.