Keeping a tab on developments: PNB MD

New Delhi: Punjab National Bank (PNB), which has about Rs7,000 crore exposure in Adani Group entities, on Monday said it is keeping a close watch on situation developing following the damning disclosures by a US short seller.

The state-owned bank has total exposure of about Rs7,000 crore. Out of that Rs2,500 crore is related to the airport business. "Whatever exposure we are having is backed by cash flow. Total exposure include investment of Rs42 crore and remaining credit," PNB managing director Atul Kumar Goel said, while announcing quarterly numbers. As on date there is no worry as the bank has not too much exposure keeping the size of the lender, he said, "we are keeping a close watch on development (on Adani front) in times to come."

Adani Group's listed companies have lost over $70 billion since the January 24 report of the New York firm that flagged high debt levels at the ports-to-energy conglomerate and the alleged use of offshore entities in tax havens. Hindenburg Research had alleged that the ports-to-energy-to-cement conglomerate had engaged in "brazen stock manipulation and accounting fraud" for decades. The Adani Group has denied all charges and threatened to sue the US firm. Shares of Adani group firms have faced heavy drubbing since Tuesday's close last week, after Hindenburg Research made damaging allegations against the conglomerate. Most of the group firms fell for the third day running on Monday. Since Tuesday's close last week, shares of Adani Transmission have tumbled 41.66 per cent, Adani Total Gas tanked 39.57 per cent, Adani Green Energy declined 37.55 per cent and Adani Ports fell 23.75 per cent on the BSE.

The calculation takes into consideration Tuesday's closing price to Monday's intra-day lows of all Adani firms. Shares of Ambuja Cements declined 22.77 per cent, ACC tanked 20.32 per cent, Adani Enterprises fell 19.51 per cent, Adani Wilmar dipped 14.25 per cent, Adani Power (14.24 per cent) and NDTV (14.22 per cent). Stock markets were closed on Thursday on account of Republic Day.