LIC, SBI’s exposure within permitted limits: Sitharaman on Adani issue

Union Finance Minister Nirmala Sitharaman on Friday responded to the Adani-Hindenburg issue in an interview with News18 , citing the statements of the SBI and the LIC.
She also reiterated that their exposure to Adani Group stocks is well within permitted limits and that they are still profitable despite falling valuations.
Also Read ‘Government has nothing to do with Adani issue,’ says Pralhad Joshi The stock market turmoil created by rout in Adani group shares is a “storm in a tea cup” from a macroeconomic point of view, finance secretary T V Somanathan said on Friday, emphasing that India’s public financial system is robust.
The senior most bureaucrat in the finance ministry also said that movements in the stock market per se is not the government’s concern and there are independent regulators to take necessary action.
Replying to a question on the impact of the fraud allegations on the Adani group on financial system considering banks and insurance companies exposure to the group, Somanathan said India’s public financial institutions are robust.
“There is absolutely no concern from the point of view of financial stability, either for depositors, or for policyholders, or for anyone holding shares in these institutions. The share of any one company is not such as to create any impact at the macro level and so there is absolutely no concern from that point of view,” he told PTI in a post-budget interview.