Adani US Indictment Impacts PSU shares, fell by 4.47% amid worries over exposure

The Shares of public sector lenders fell by up to 4.50 percent amid worries over the huge exposure of banks in various Adani Group companies. The selling pressure in bank stocks came after US prosecutors in New York indicted Adani Group Chairman Gautam Adani, his nephew Sagar Adani, and six others for allegedly offering over Rs 2,000 crore (US $265 million) in bribes to Indian government officials for securing “lucrative solar energy supply contracts” with state electricity distribution companies.

Shares of SBI plunged by 3.65 percent, PNB by 4.34 percent, Bank of Baroda by 4.24 percent, Canara Bank by 3.99 percent and Union Bank by 2.25 percent. Public sector lender IREDA declined by 2.37 percent, Power Finance Corp by 4.46 percent, and REC by 4.47 percent in the morning session.

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The Adani group’s total debt exposure is estimated to be around Rs 2.41 lakh crore. Adani shares dragged the benchmark Sensex by 518 points to 77,060.29 and the NSE Nifty fell by 182 points to 23,335.80 on selling pressure at 11.30 am IST.

Meanwhile, Adani Green Energy plunged by 17.51 percent, Adani Energy Solutions by 20 percent, Adani Enterprises by 21.07 percent, Adani Power by 12.13 percent, Adani Total Gas by 13.75 percent and Adani Ports by 19.17 percent in the morning session.

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