Indian banks review Adani exposure in wake of US bribery allegations

MUMBAI: Indian banks are reviewing their Adani exposure and whether they need to tighten due diligence, eight bankers said on Thursday, after the group’s billionaire founder Gautam Adani was indicted by US authorities over an alleged $265 million bribery scheme.

Adani Group’s listed stocks, which at one point saw as much as $34 billion wiped off their market value, meanwhile recovered ground as some partners and investors rallied behind it.

State Bank of India will not stop lending to ongoing Adani projects that are nearing completion, two sources told Reuters, but will exercise caution when disbursing loans to ensure all terms and conditions are being met.

Bank of India, Union Bank, ICICI Bank, Canara Bank, IDBI Bank and RBL Bank, which have relatively smaller exposures to the Adani Group, are undertaking similar exercises, sources said. A regulatory source aware of the development said from a banking system perspective that no entity was over-exposed to the Adani group and there was no cause for concern.

Earlier on Thursday, Israel said it wants Adani Group to continue to invest there, adding that the US allegations were not “problematic” from its perspective.

“We wish Adani and all Indian companies continue to invest in Israel,” Israel’s Ambassador Reuven Azar to India told Reuters in an interview.

The Adani Group holds a 70% stake in Haifa port in northern Israel and is involved in projects with Israeli firms, including manufacturing military drones and commercial semiconductors.

Adani and seven others are accused by US authorities of being part of a scheme to pay bribes to secure Indian power supply contracts. The Adani Group has denied the allegations.