Pressure mounts on Gautam Adani after US indictment; banks started reviewing…

A review does not necessarily mean that the step will change the lenders' credit approach toward the Adani Group. A regulatory source who is in know of the development says as per the standpoint of the banking system, none of the banks is over exposed to the Group. 

Indian banks have started reviewing their exposure to the beleaguered Adani Group after directors Gautam Adani and Sagar Adani were indicted by a U.S. court in a bribery case.

According to reports published in Reuters, the eight bankers have started scrutiny before offering them new loans. Even banks whose exposure is smaller to the group are also undertaking similar exercise. These banks are Bank of India, Union Bank, ICICI Bank, Canara Bank, IDBI Bank and RBL Bank.

A review does not necessarily mean that the step will change the lenders’ credit approach toward the Adani Group. A regulatory source who is in know of the development says as per the standpoint of the banking system, none of the banks is over exposed to the Group. 

The news agency sought a reply from the RBI but it did not get any comments so far. 

According to IIFL Securities, State Bank of India has the largest exposure to the Adani Group. The India’s largest bank has sanctioned Rs 33, 400 crore loan to the group.  

After the directors are indicted by the US court, the bank will take precautionary measures while disbursing loans to the group and also ensure that all conditions are met. It is learnt that the bank will not stop funding in projects that are about to complete. 

The bankers were in no mood to speak with the media as they are not authorised to speak on the issue.