This bank is willing to extend loan to Adani Group for Dharavi redevelopment project in Mumbai

This bank is willing to extend loan to Adani Group for Dharavi redevelopment project in Mumbai

Chadha said that it will extend loans to Adani Group as long as the company meets the bank's underwriting standards.

FPJ Web DeskUpdated: Monday, February 20, 2023, 12:06 PM IST
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This bank is willing to extend loan to Adani Group for Dharavi redevelopment project in Mumbai | File

One of India's biggest state-backed lenders, Bank of Baroda's CEO Sanjiv Chadha, said during an interview with Bloomberg that the bank is willing to consider lending additional money to the Adani group amid allegations of improper use of tax havens and stock manipulation by US-based short seller Hindenburg Research.

Chadha said that it will extend loans to Adani Group as long as the company meets the bank's underwriting standards. He also added that he is not concerned with the market volatility around Adani's stocks.

Chadha said during the interview, "You have underwriting standards, and you should stick to them in good times and bad times."

Bank to consider extending company's loan for Dharavi redevelopment

Chadha also said that the bank will consider extending the company's loan for its Dharavi redevelopment project of Rs 50.7 billion, depending on the concentration limit.

Banks hesitant to offer refinancing to Adani Group

This may come as a relief to Gautam Adani, as many banks have been hesitant to offer the company refinancing of $500 million to bridge the loan, which is due next month. This comes at a time when, due to the Hindenburg Report that was released last month, the group's assets have been down. However, the company, as a means to satisfy the investors, said that it will be addressing upcoming maturities.

Bank's exposure to Adani Group

While, Chadha refused to elaborate on the bank's overall exposure to Adani Group, earlier this month he had said that the banks exposure to the group is about a quarter of what is allowed by RBI's framework.

State Bank of India had earlier said that its exposure to companies in the Adani Group was at Rs 270 billion.

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