India banks are reviewing Adani Group exposure after US charges, sources say (updated)

IIFL Capital Services

28/11/2024 10:10

(Adds details from paragraph 4)
    By Siddhi Nayak, Sarita Chaganti Singh and Nikunj Ohri
       MUMBAI/NEW DELHI, Nov 28 (Reuters) - Indian lenders,
including State Bank of India  SBI.NS , are reviewing their
exposure to Adani Group and examining whether they need to
tighten their due diligence when offering new loans to them,
after the U.S. accused Chairman Gautam Adani of bribery, eight
bankers said.
    Bank of India, Union Bank, ICICI Bank, Canara Bank, IDBI
Bank and RBL Bank, which have a relatively smaller exposure to
the group, are also undertaking a similar exercise.
        A review would not necessarily entail any change in the
lenders' credit approach with regards to the group.
  
        A regulatory source aware of the development said from a
banking system perspective there is no need to panic as no
entity at this point is over exposed to the group.
  
        The Reserve Bank of India did not reply to an email
seeking comment.
  
    SBI has the largest exposure to the Adani Group among Indian
banks, with sanctioned loans of 338 billion rupees ($4 billion),
according to IIFL Securities, a brokerage.
    SBI won't stop lending to ongoing Adani projects that are
nearing completion, sources said, but added the bank will
exercise caution while disbursing loans to ensure all terms and
conditions are being met by the group.
    None of the bankers wished to be identified because they
were not authorised to speak with the media. SBI, named lenders
and the Adani Group did not immediately reply to an email
seeking comment.

     
  

 (Reporting by Sarita Chaganti Singh and Nikunj Ohri in New
Delhi and Siddhi Nayak in Mumbai; Editing by Kim Coghill)