Debt exposure of domestic banks and NBFCs in Adani Group increase to 36%

Indian lenders, including domestic banks and non-banking financial companies, have extended Rs 88,100 crore to the Adani Group, out of its total debt of Rs 2,41,394 crore as of March 31, 2024

Domestic banks and non-banking financial companies (NBFCs) now account for 36.5 per cent of the Adani Group’s total debt, reflecting a significant increase in their exposure to the conglomerate. According to a report by The Economic Times, Indian lenders have extended Rs 88,100 crore to the Adani Group, out of its total debt of Rs 2,41,394 crore as of March 31, 2024. This marks a rise from Rs 70,213 crore in the previous year, when their contribution was 31 per cent of the group’s gross debt of Rs 2,27,248 crore.

Debt from the domestic capital market also rose to Rs 12,404 crore by March 2024, up from Rs 11,562 crore a year earlier. Meanwhile, debt from global banks slightly decreased to Rs 63,296 crore from Rs 63,781 crore, and global capital market debt declined to Rs 69,019 crore from Rs 72,794 crore during the same period.

Despite the 6 per cent year-on-year increase in debt, the Adani Group experienced a 45 per cent rise in operating profit, reaching Rs 82,917 crore in FY24. This growth was primarily driven by the infrastructure segments of Adani Enterprises, including airports, green hydrogen, and data centres.

Major banks among Adani Group’s lenders

The increase in debt is attributed to capital expenditures in the group’s airports and green energy businesses, part of its broader portfolio spanning infrastructure, ports, metals, building materials, utilities, and fast-moving consumer goods. Significant lenders include domestic banks like State Bank of India, Bank of Baroda, Union Bank of India, Canara Bank, HDFC Bank, Axis Bank, and ICICI Bank, though none have publicly commented on their increasing exposure.

For the current financial year, the group aims to reach an operating profit of Rs 1 trillion, supported by strong performance across its cement, ports, green energy, airports, and solar modules businesses.

Key developments expected to contribute to this target include a 13 per cent capacity increase at Adani Cement with the integration of Penna Cement, the operationalisation of Vizhinjam and Colombo ports, and a significant expansion of Adani Green Energy’s capacity to 17 GW.