Indian banks are reportedly reassessing their financial ties with the Adani Group after U.S. prosecutors charged Chairman Gautam Adani and others with bribery and fraud.
Public sector banks, including the State Bank of India (SBI), Bank of India, and Union Bank of India, are leading the review, with private lenders like ICICI Bank, Canara Bank, IDBI Bank, and RBL Bank also involved, Reuters claimed.
SBI, the largest lender to the group with ₹338 billion in sanctioned loans, faces significant stakes in the exercise.
A regulatory source cited in the report claimed there’s no reason for alarm, noting that Indian banks are not heavily overexposed.
However, SBI is tightening oversight for future loans while continuing to fund Adani projects nearing completion. BT could not independently confirm the report and will update the story after receiving comments from the lenders or the Adani Group.
The U.S. indictment accuses Gautam Adani, his nephew Sagar Adani, and others of disguising $265 million in bribes as “development fees” to secure solar power contracts while misleading investors about anti-bribery compliance.
These actions allegedly helped raise over $3 billion between 2021 and 2024. Adani stocks initially dropped but partially recovered after Adani Green Energy clarified that its executives are not accused of violating the U.S. Foreign Corrupt Practices Act.
Meanwhile, Abu Dhabi’s International Holding Company (IHC) has reaffirmed its confidence in the Adani Group, emphasizing its commitment to green energy and sustainability.
“Our partnership reflects our belief in their contributions,” IHC stated. Managing nearly $100 billion in assets, IHC invested $500 million each in Adani Green Energy and Adani Transmission and $1 billion in Adani Enterprises in 2022. While it trimmed stakes in Adani Green Energy and Adani Transmission, it raised its holding in Adani Enterprises to over 5%.