What we were going to realise is that if over the next 5-10 years India is becoming the third largest economy in the world, most of our companies would be subject to a lot more scrutiny. Almost every meeting had an Adani question coming up and one had to explain what we just discussed before. I was on a two-week marketing trip in Europe. I would not use the word tainted, that is a bit strong. Has this entire Adani episode raised eyebrows and tainted the India image, which was going just so well up until last year in terms of purely corporate governance standards? Hopefully that cash can take care of the leverage and we should come out of this well. They have committed to reduce the capex of the Adani Ports. The hope is that there are some good cash generating businesses. That would tell us the true extent of the pledge and the coverage etc. So one does not know what are the pledges through some of the non-disclosed entities etc. There is a lot more room available for the pledge. And typically, when the stocks do well, the tendency is to take a lot more leverage. The group's shares have done very well over the last 12-18 months.
I am going to be very honest here because one does not know. Prudent lenders definitely would not feel an impact. One, is there going to be no domino effect of what has happened in Adani group of stocks and other lenders and other NBFCs because the fear in the market is that this is an over-leveraged group and if anything goes wrong here, it could significantly have an impact on the lender's books or the lender's balance sheet? it should be a good learning from a medium-term perspective. SUBMITDomestic banks have very limited exposure to the group and as long as the group performs in terms of the governance practices, the leverage, the pledges, etc.
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