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

MUMBAI/NEW DELHI : Indian lenders, including State Bank of India, 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.