DBS Group has a tightly managed exposure to India’s troubled Adani group of companies, Piyush Gupta, the CEO of Southeast Asia’s largest bank said on Monday.
“They’re solid, cash generating companies, so we’re not concerned about the exposure,” he told reporters at a media briefing on Monday.
The cement industry has huge potential, given the growth in the market, Gupta said, “and so that exposure is quite tightly managed.”
Adani had previously touted its deep global banking ties, saying its portfolio companies have shown successful syndication of banking transactions. It cited as an example deals such as its $10.5 billion acquisition of Holcim Ltd.’s Indian cement operations.
New York-based short-seller Hindenburg Research accused the Adani Group in a Jan. 24 report of stock manipulation and improper use of offshore tax havens that it said obscured the extent of Adani family stock ownership in group firms.
The conglomerate, which has denied any wrongdoing, has since seen $110 billion wiped off the value of its seven listed firms.