Srinagar: As J&K Bank had given a Rupees 400 crore loan to Adani groups; the bank on Friday said that the investors have nothing to worry about as its loans to the embattled business group are secured and reduced to Rs 250 crore.
India's Gautam Adani, the school dropout who rose to become one of the world's richest men, suffered a stunning defeat on Wednesday when his flagship firm withdrew a blockbuster share sale after an attack by a small U.S. investment firm over his business practices
However, J&K bank Deputy General Manager Nishikant Sharma said "our loans to Adani Group are secured against the assets of the projects that were financed by JK Bank." he said.
"JK Bank had given a loan of Rs 400 crore to Adani Group to finance two thermal power projects – one in Maharashtra and one in Mudra, Gujarat," he further said.
"When we financed the two projects 10 years ago, our exposure was Rs 400 crore, which has now come from Rs 240 crore to Rs 250 crore. The payments are regular and both the power projects are operational with power purchase agreements in place. The bank has the first charge on their sale. Not a single penny is overdue from the Adani account," he added.