The five public sector general insurers have an exposure of 0.14% of their combined assets under management to the Adani Group companies, Parliament was told on Monday.
As per data received from public sector general insurance companies, namely New India Assurance Company Limited, United India Insurance Company Limited, National Insurance Company Limited, Oriental Insurance Company Limited and General Insurance Corporation of India, total exposure in Adani Group of companies as on January 31, 2023 is Rs 347.64 crore, which is 0.14% of the total AUM of all the five companies,” said minister of state for finance Bhagwat Karad in the Lok Sabha.
The minister was responding to a question on whether lending to and investment in the Adani Group of companies from public financial institutions and public sector banks has increased in the last eight years.
The Reserve Bank of India (RBI) has informed that under the provisions of section 45E of the Reserve Bank of India Act, 1934, RBI is prohibited from disclosing credit information, he further said, adding that section 45NB of RBI Act provides that any information submitted by non-banking financial company shall be treated confidential and not to be published or otherwise disclosed.
gWith regard to other financial institutions, namely, Exim Bank, Small Industries Development Bank of India, National Housing Bank, National Bank for Financing Infrastructure, National Bank for Agriculture and Rural Development, these financial institutions are bound by provisions of the concerned Acts, and are prohibited from divulging any information relating to, or to the affairs of, their constituents,” he said.
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Earlier, Life Insurance Corporation of India had said its total holding under equity and debt is Rs 35,917.31 crore as on December 31, 2022 under Adani group of companies.
The Adani Group has 10 listed firms. There have been concerns over the investments in the firm, especially of public money in recent weeks. This follows a scathing report by US short-seller Hindenburg Research that have severely impacted the shares of the group firms.