To begin with – all this is dependent on the probability of unwinding – its an important but unknowable (in terms of timing)…
As for 0.53% of total credit outstanding, if I were to assess, I would not assess in this way. It is probably very naive and uninformed thought process that everything is individual and unlinked in nature. There are quite a few companies, thousands of individuals, and even non-Indian entities and their employees and associated livelihoods linked to Adani group.
Not to downplay the cascading effects of above groups, but even more importantly, in an event of unwinding, its the indication to the market that matters more because it impacts the psychology and reveals deep rooted governance concerns that have been raised for decades but ignored by govts, regulators, industries, investors and so forth.
Anyway, the thought (may be concern) related to IDFC First bank is that bank probably has active exposure to the tune of 350 crores that is publicly disclosed and directly linked to Adani. For e.g. if Adani sub contracts HG Infra engineering for an expressway in Uttar Pradesh, and IDFC First also has exposure (I haven’t verified) to HG Infra, that is second order exposure.
But again – all this is dependent on presumed unwinding – this piece of information is important but unknowable.
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