Bank credit profiles not at much risk from Adani exposure, says Fitch

State-owned lenders could see pressure to refinance group's debt if global market shun it

Indian banks’ exposure to the Adani Group is not that large to present substantial risk to their standalone credit profiles, said rating agency Fitch on Tuesday.

“We believe loans to all Adani group entities generally account for 0.8%-1.2% of total lending for Fitch-rated Indian banks, equivalent to 7%-13% of total equity. Even in a distress scenario, it is unlikely that all of this exposure would be written down, as much of it is tied to performing projects,” it said.

The issuer default ratings of all domestic banks continue to be driven by expectations that the lenders would receive extraordinary support