DBS Group Holdings, Singapore’s biggest lender, holds a total of S$1.3 billion ($976 million) exposure to the Adani Group, S$1 billion of which came from a cement firm acquisition financing, and the remaining S$300 million from other Adani firms.
The company’s CEO, Piyush Gupta, has stated that the bank is not exposed to Adani’s share issues and that its exposure is tightly managed. Gupta also expressed confidence in the bank’s risk management process and stated that the Adani Group’s solid cashflows were ring-fenced, so the exposure would not cause any issues. Adani has previously referred to its strong global banking relationships, which have enabled successful syndication of banking transactions for its portfolio companies.
DBS Group Holdings Ltd’s exposure to the Adani Group is around SGD 1.3 billion, which includes SGD 1 billion from financing related to the acquisition of a cement firm and SGD 300 million from other Adani firms, according to its CEO, Piyush Gupta. He reassured that the exposure is ringfenced and well-managed with solid cash flows.
DBS is Singapore’s largest lender and has expanded aggressively in India, looking to invest more in its Indian unit for faster growth. The spotlight on Adani’s banking relationships intensified due to its ongoing conflict with the US short seller Hindenburg Research, which has accused it of stock manipulation and accounting fraud. While some lenders have hesitated to refinance a bridge loan, banks in India have largely disregarded concerns about the Adani Group.
What is the recent controversy between Adani and Hindenburg Research?
Adani Group, one of India’s biggest conglomerates, has been embroiled in a controversy with US short-seller Hindenburg Research. Hindenburg has accused Adani of accounting irregularities, siphoning off funds, and over-invoicing for capital expenditures.
In response, Adani has denied the allegations and called them “blatantly erroneous.” The controversy has led to scrutiny of Adani’s banking relationships and the response of lenders to the allegations. The controversy is ongoing, and the Indian stock market regulator is reportedly looking into the matter.
what is DBS bank?
DBS Bank is a multinational banking and financial services corporation headquartered in Singapore. It is the largest bank in Southeast Asia and one of the larger banks in Asia, with a presence in 18 markets globally.
DBS provides a wide range of services including consumer banking, investment banking, asset management, and insurance. The bank has received numerous accolades for its digital innovation and transformation efforts, and is committed to sustainable business practices.