5 PSU insurers have Rs 347-crore exposure to Adani firms: FinMin

Five state-run general insurance companies have a total exposure of Rs 347.64 crore, or 0.14 per cent of their total assets under management (AUM), in Adani group of companies, the Finance Ministry said on Monday.

In a written reply to a question by Congress’ Manish Tewari, Minister of State for Finance Bhagwat Karad said Life Insurance Corp (LIC) held Rs 35,917.31 crore in debt and equity of Adani group of companies as on December 31, 2022. This is 0.97 per cent of its total assets under management (AUM) of Rs 41.66 trillion.

Karad also said that as per information received from state-owned general insurers, their exposure to Adani group of firms was even less.

The public sector general Insurance firms included New India Assurance Company, United India Insurance Company, National Insurance Company, Oriental Insurance Company, and General Insurance Corporation of India. When asked about the loans given to Adani firms by state-owned banks and financial institutions, Karad said neither the RBI nor any bank had to disclose credit information as such information is treated as confidential under the provisions of section 45E of the RBI Act. 

Finance Minister Nirmala Sitharaman and ministry officials stated that the regulators were apprised of the Adani-Hindenburg row and were carrying out due diligence.

Earlier this month, Finance Secretary TV Somanathan had termed the Adani issue a ‘storm in a teacup’.