REG - Axis Bank Ltd Axis Bank Ltd (144A) - Clarification - Bank’s exposure to Adani Group

Axis BankAnnouncement

06/02/2023 07:00

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RNS Number : 9400O  Axis Bank Limited  04 February 2023

AXIS/CO/CS/539/2022-23

 

February 4, 2023

Dear Sir(s),

 

Sub.:  Clarification regarding Axis Bank's exposure to Adani Group entities

 

The Bank has been receiving queries seeking more information on its exposures
to Adani Group. Accordingly, we clarify that Axis Bank's outstanding as of
December 31, 2022 to Adani Group entities is as set out in the table below:

 

 As of               Fund based outstanding as % of net advances  Non-fund based outstanding as % of net advances  Investments as % of net advances  Total outstanding as % of net advances

 December 31, 2022
 Adani Group         0.29%                                        0.58%                                            0.07%                             0.94%

 

•   We extend credit, basis comfort on cash flow, security, and repayment
capability of obligors as per the Bank's credit assessment framework. We
remain comfortable with our exposure to Adani Group basis the same.

•   Our exposure to Adani Group is primarily to the operating companies in
the Ports, Transmission, Power, Gas Distribution, Roads, Airports etc.

•   The non-fund based facilities are primarily in the form of Letters of
Credits and Performance Bank Guarantees that are majorly short tenor.

 

In addition, the Bank's fund based and non-fund based outstanding towards the
Group's JVs (with a MNC in FMCG segment and with a PSU in City Gas
Distribution segment) is at 0.02% and 0.25%, respectively of the Bank's net
advances.

 

Further we would like to highlight that the Bank has a resilient balance sheet
with standard asset coverage of 1.53% as of December 31, 2022.

 

You are requested to take note of the above and arrange to bring the same to
the notice of all concerned.

Thanking You.

Yours Sincerely,

For Axis Bank Limited

 

 

 

Sandeep Poddar

Company Secretary

 

CC: London Stock Exchange

        Singapore Stock Exchange

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