Lok Sabha Question No. 1874 (UNSTARRED), answered on 2023-03-13
Subject: Investment in Adani Group
Ministry: FINANCE
Asked by: Anto  Antony

1874. SHRI ANTO ANTONY:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has any statistics regarding investments made by the public sector institutions  like  Life  Insurance  Corporation  of  India  (LIC),  Employees  Provident  Fund Organization (EPFO), State Bank of India (SBI) and other institutions into the Adani Group or Adani Enterprises Ltd.;
- (b) if so, the details of investments made by the public sector institutions during the last 10 years, year-wise and institution-wise;
- (c) whether the Government has any statistics regarding revenue generation or loss made by these institutions due to investments in Adani group of companies or Adani Enterprises Ltd.; and
- (d) if so, the details of revenue generation or loss made by public sector institutions during the last ten years, year-wise and institution-wise?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (DR. BHAGWAT KARAD)

(a) to (d): Employees Provident Fund Organization (EPFO), Ministry of Labour and Employment has informed that they invest in equity markets only through Exchange Trade Funds replicating BSE-SENSEX and NIFTY- 50 indices.

The Life Insurance Corporation of India (LIC), as per it's press release dated 30.01.2023, has clarified  its  position  on  investments  made  in  Adani  Group  and  the  same  is  attached  in  the annexure-I.

As  per  data  received  from  Public  Sector  General  Insurance  companies,  namely  New  India Assurance  Company  Limited,  United  India  Insurance  Company  Limited,  National  Insurance Company Limited, Oriental Insurance Company Limited and General Insurance Corporation of India, total exposure in Adani Group of Companies as on 31.1.2023 is Rs 347.64 crore which is 0.14% of the total AUM of all the five companies.

The Reserve Bank of India has informed that RBI does not collect borrower level investment data and such information is not maintained by it.

Further,  the  State  Bank  of  India  (SBI)  and  the  nationalised  banks  have  informed  that  as  per provision for obligation as to fidelity  and  secrecy  under  section  44  of  the  State  Bank  of  India Act,1955  and  the  Section  13(1)  of  the  Banking  Companies  (Acquisition  and  Transfer  of Undertakings) Act, 1970/1980, they can't divulge any information relating to or to the affairs of their  constituents.  Further,  response  of  SBI  to  some  of  the  media  queries  with  regard  to  its exposure in the group is at annexure-II.

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## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 1874

ANSWERED ON - 13.3.2023

## INVESTMENT IN ADANI GROUP

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Response of SBI to some of the media queries with regard to its exposure in the group

While as a matter of policy, SBI does not comment on individual clients, in the interest of setting the context right, it is clarified that SBI's exposure to Adani group is well below the Large Exposure Framework of RBI (LEF). All exposure to the group from SBI is secured by cash generating assets with adequate TRA / Escrow mechanism in place, hence debt service will not be a challenge

In fact, the Indian banking system exposure to the group as a % to their total debt has been declining over the last 2-3 years. Same period, their Debt to EBDITA also has been getting better, which helps the group to service it's obligations comfortably

As is known, most of their acquisitions have been financed through overseas borrowings and market instruments, hence there is no exposure build up to Indian banking system on this count

SBI keeps reviewing the non-funded exposures to all large entities periodically and there is no concern or likelihood of any devolvement at this juncture

The Bank as a matter of policy keeps a watch on all our exposures to large groups and will take measures from time to time basis our assessment.