'Local lenders' exposure to Adanis expected to come down soon: Group executive
Adani Group is likely to reduce once some of the conglomerate's current investments are complete and start generating cash flows, a senior group executive told ET.
«Funds were being spent on the copper plant, the roads business and the PVC business, where domestic banks and institutions participated in a big way,» the executive said, requesting not to be named. «What will also happen is that when these assets come online, you will see a drop in exposure of Indian banks back to below 36%.»
Local banks and non-banking financial lenders accounted for about 42%, or ₹107,985 crore, of the Adani Group's total borrowings of ₹258,176 crore as of September-end, compared with 36%, or ₹88,100 crore, at the end of March 2024. As on March 31, 2023, the group had 31% of its loans from Indian lenders.
Borrowing from domestic capital markets could go up to around 11% from the current 5%, while that from international capital markets could drop from 23% now, the executive said. Bonds sold in the global markets accounted for 29% of the group's total debt as of March 2024.
A little more than a fifth of the group's gross debt is currently held as cash balance, giving it enough liquidity to service debt for 28 months, the group said in a presentation Monday.
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