Loans to Adani not behind UAE customers closing accounts, Bank of Baroda clarifies

Loans to Adani not behind UAE customers closing accounts, Bank of Baroda clarifies

The lender has dismissed the social media rumours, clarifying that it had decided to shut down the branch and given customers time till March 22, 2023 to close their accounts.

FPJ Web DeskUpdated: Monday, February 27, 2023, 04:29 PM IST
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The Adani-Hindenburg fiasco has taken India by storm, and most sectors have been affected by it, given the conglomerate's expansion so far. The exposure of public sector banks to the firm rapidly losing market value was a cause for concern, but the RBI stated that it was within limits. Among them Bank of Baroda has dismissed rumours that customers turned up at its Al Ain branch in the UAE, to close accounts over its support for Adani.

Bank of Baroda's CEO Sanjiv Chadha had earlier announced that the lender would continue to fund Adani, if it meets their underwriting criteria. This announcement was touted as a reason for people rushing to Al Ain branch to close their accounts at the bank. But the lender has dismissed the social media rumours, clarifying that it had decided to shut down the branch and given customers time till March 22, 2023 to close their accounts.

The rest of the accounts at the Al Ain branch will be transferred to the Abu Dhabi branch, and customers are only turning up to give instructions and required permissions. As for Adani, the CEO Chadha had clarified that decisions on loans are based on risks and the possibility of returns on exposure, and this criteria won't change.

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