Hyderabad: India’s largest lender, State Bank of India (SBI) and a host of Indian bankers are reviewing their exposure with the Adani Group to tighten their due diligence after the company’s chairman was indicted by the US government, Reuters reported.
According to a Reuters report, eight Indian bankers from SBI, Bank of India, Union Bank, ICICI Bank, Canara Bank, IDBI Bank and RBL Bank stated that they are examining the need to check the company’s financial statements in larger detail when offering new loans. The group’s founder Gautam Adani was indicted in an alleged USD 265 million ‘bribery’ scheme.
Meanwhile, the SBI said that it will not stop lending to ongoing Adani projects that are nearing completion, but will exercise caution when disbursing loans to ensure all terms and conditions are met.
The SBI has the largest exposure to the Adani Group among Indian banks, from whom the conglomerate was reportedly sanctioned loans of Rs 33,800 crore (USD 4 billion).
Israel wants Adani to invest
Amid a global meltdown and Rs 2,87,200 crore (USD 34 billion) being wiped off their market value following the fraud charges, the Adani Group was given assurance of continued collaboration with Israel, Reuters reported.
“We wish Adani and all Indian companies continue to invest in Israel,” Israel’s envoy Reuven Azar was quoted by Reuters, adding that allegations by the US government were not problematic from Israel’s point of view.
The Adani Group owns a 70 percent stake in Israel’s Haifa port, and also is involved in various projects and deals with Israel. As part of an arms deal between the company and the country in 2018, Adani Defence & Aerospace exports military drones to Israel, which is at war with Gaza and the Palestinian people.
