Public financial institutions are in a very strong position, says Finance Secretary Somanathan

India's public sector financial institutions are in a very strong position and their exposure to one private company would not create difficulty for them, finance secretary TV Somanathan told ET in response to a question on developments at the Adani Group.

He said it is for regulators, markets and the company to address the issue. "The government does not concern itself with the fortunes of individual private sector companies," Somanathan told ET during a post-budget interaction. "We are confident that the public financial institutions are in a very strong position and their exposures to any one private company is not of a magnitude that would create any unease or difficulty for the public financial institutions."

"It is for the regulators the markets and the company concerned to do the needful," Somanathan told ET.


The Adani Group shares have plunged and bond yields rallied following the US short-seller Hindenburg Research's adverse report on the conglomerate recently. There have been concerns that the developments may have implications for the financial institutions that have provided loans to the Gautam Adani-led group.

"Our balance sheet is very healthy with strong cashflows and secure assets, and we have an impeccable track record of servicing our debt," Adani said in a statement on Wednesday withdrawing the FPO.