The Collapse of Adani's House of Cards - The Hindenburg Effect - Page 5

Very valuable information and very good brain storming.

You can use following forum for such discussions.

https://www.indiaforums.com/forum/financial-markets-and-global-economy/5305430/discussion-on-global-economy-and-financial-markets?pn=36

"The central bank has asked all lenders to submit exposure data related to the Adani Group," a senior banker in the know said.

"Due to the turmoil in the stocks, the RBI wants to assess if this could lead to a potential problem for the banking system. They are also assessing whether any bank is in breach of the group exposure norms."

The Reserve Bank of India (RBI) is said to be assessing the banking system's exposure to the Adani Group which has lost about $100 billion in market value since US short-seller Hindenburg Research's allegations of misgoverning, 'fraud' and price 'manipulation' surfaced a week ago, multiple bankers familiar with the central bank move told ET.

While the central bank periodically monitors all big borrowers and banks' ability to withstand shocks, the latest check follows the market turmoil.

The findings----

Three large banks have exposure of ₹40,000 crore to Adani firms.

While SBI and PNB have explicitly stated their exposure to the Adani group, Bank of Baroda declined to disclose it.

The country’s top three state-run banks have an aggregate exposure of close to ₹40,000 crore to various entities of the Adani group, disclosures by banks showed, even as lenders and the Reserve Bank of India allayed fears of any stress on banks’ books because of the Adani stock rout.

The largest lender, State Bank of India, has an exposure of ₹27,000 crore, while Bank of Baroda and Punjab National Bank have exposures of ₹5,380 crore and ₹7,000 crore, respectively. While SBI and PNB have explicitly stated their exposure to the Adani group, Bank of Baroda declined to disclose it but said it is a fourth of the group exposure permitted by the Reserve Bank of India!!

Why Bank Of Baroda declined to disclose its quantity of exposure to the Adani Group? There are many angles in this entire murky issue.

Yes Amrita [ Armu4eva] I've seen Nirmala Sitaraman's statement, that itself raised many eyebrows, all of a sudden why she has to give that statement???

The impact on Banking Sector, and it's effect on Bank shares, tomorrow will define a few aspects. Let us see---

Originally posted by: Armu4eva

Some more updates:

• “Both SBI and LIC have issued detailed statements… the Chairperson, the CMD has himself come out and explained how they are not overexposed… and also said, look, we are sitting over profits for the exposure… They have very clearly said their exposure is well within the permitted limits and they are even now – with the valuation falling as well – sitting over profit,” Union Finance Minister Nirmala Sitharaman said in an interview to Network18.
  
• NSE, BSE put 3 Adani Group companies under short-term additional surveillance measure. As many as three Adani group companies, including Adani Enterprises, have come under short-term additional surveillance measure (ASM) framework of the BSE and NSE, according to the latest data available with the exchanges on Thursday
  
• The Reserve Bank of India today said the country's banking system remains resilient and stable, amid concerns about the exposure of lenders to Adani group companies. "Various parameters relating to capital adequacy, asset quality, liquidity, provision coverage and profitability are healthy.
  
• Adani Enterprises Ltd (AEL) has reportedly dropped a plan to raise Rs 1,000 crore ($121.65 million) through bonds, after a sell-off in its shares forced the flagship to pull the plug on a Rs 20,000- crore follow-on public offering (FPO).
  
• Referring to Adani Group, SEBI said, "During past week, unusual price movement observed in stocks of a business conglomerate". The market regulator added that it is committed to ensuring that stock market functions in an uninterrupted, transparent, efficient manner as has been case so far.
  
• A PIL has been filed in the Supreme Court, seeking the prosecution of short seller Nathan Anderson of US-based firm Hindenburg Research and his associates in India and the US, for allegedly exploiting innocent investors and the “artificial crashing” of the Adani Group's stock value in the market.
  

Meanwhile, Adani is yet to initiate any legal action against Hindenburg. An interesting twist!

The utter clownery lol

Originally posted by: Armu4eva

Some more updates:

• “Both SBI and LIC have issued detailed statements… the Chairperson, the CMD has himself come out and explained how they are not overexposed… and also said, look, we are sitting over profits for the exposure… They have very clearly said their exposure is well within the permitted limits and they are even now – with the valuation falling as well – sitting over profit,” Union Finance Minister Nirmala Sitharaman said in an interview to Network18.
  
• NSE, BSE put 3 Adani Group companies under short-term additional surveillance measure. As many as three Adani group companies, including Adani Enterprises, have come under short-term additional surveillance measure (ASM) framework of the BSE and NSE, according to the latest data available with the exchanges on Thursday
  
• The Reserve Bank of India today said the country's banking system remains resilient and stable, amid concerns about the exposure of lenders to Adani group companies. "Various parameters relating to capital adequacy, asset quality, liquidity, provision coverage and profitability are healthy.
  
• Adani Enterprises Ltd (AEL) has reportedly dropped a plan to raise Rs 1,000 crore ($121.65 million) through bonds, after a sell-off in its shares forced the flagship to pull the plug on a Rs 20,000- crore follow-on public offering (FPO).
  
• Referring to Adani Group, SEBI said, "During past week, unusual price movement observed in stocks of a business conglomerate". The market regulator added that it is committed to ensuring that stock market functions in an uninterrupted, transparent, efficient manner as has been case so far.
  
• A PIL has been filed in the Supreme Court, seeking the prosecution of short seller Nathan Anderson of US-based firm Hindenburg Research and his associates in India and the US, for allegedly exploiting innocent investors and the “artificial crashing” of the Adani Group's stock value in the market.
  

Meanwhile, Adani is yet to initiate any legal action against Hindenburg. An interesting twist!

You know @the legal action part…. I am pretty sure it’s like opening a can of worms 🙈🙈🙈. One does it and then other party gets legal rights to “discovery” to documents etc. Which it currently doesn’t. 🙈🙈🙈.

it’s a v tricky situation

Originally posted by: mishkil88

Very valuable information and very good brain storming.

You can use following forum for such discussions.

https://www.indiaforums.com/forum/financial-markets-and-global-economy/5305430/discussion-on-global-economy-and-financial-markets?pn=36

if it’s moderated well we can make it Public also.

Originally posted by: vijay

if it’s moderated well we can make it Public also.

so many CFOs .. why ? were they not comfortable ?https://twitter.com/hindenburgres/status/1618080704474271745?s=46&t=sFvM_bXFuKM47hbTBcTEvg

Originally posted by: mishkil88

i am not sure how it can be done. I tried but no luck.

Originally posted by: vijay

if it’s moderated well we can make it Public also.

So much going on these days …… 👍🏼

Today's updates:

• British lender Standard Chartered has stopped accepting Adani Group bonds as collateral on margin loans. This comes after similar measures were announced by Citigroup and Credit Suisse, both of which stopped giving loans on dollar bonds by Adani Group.
  
• Sources share that Adani Group will pay down all share-backed loans; that will happen very shortly. Second, they will build up more cash buffers in these businesses, they are already very strong, and this will be demonstrated next week when the results are out. In share-backed loans, the group had to post more collateral in the form of shares because the share prices were going down. You will see that the share pledges have gone up slightly in Adani Ports, Adani Transmission, Adani Green and some increase in Adani Enterprises.
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