Indian banks are currently in the process of reevaluating their financial connections with the Adani Group after U.S. prosecutors brought charges of bribery and fraud against Chairman Gautam Adani and several others. Public sector banks such as the State Bank of India, Bank of India, and Union Bank of India are spearheading this reexamination, in conjunction with private lenders like ICICI Bank, Canara Bank, IDBI Bank, and RBL Bank, as reported by Reuters.
It has been disclosed that the State Bank of India (SBI), which holds ₹338 billion in sanctioned loans to the Adani Group, is significantly involved in this reassessment. Despite a regulatory source indicating there is no immediate cause for concern, stressing that Indian banks are not excessively overexposed, SBI is intensifying oversight protocols for future loans. The bank, however, remains committed to financing Adani projects that are in the final stages of completion.
The U.S. indictment alleges that Gautam Adani, alongside his nephew Sagar Adani and others, orchestrated a scheme where $265 million in bribes were concealed as "development fees" to secure solar power contracts, all while allegedly deceiving investors about anti-bribery compliance. These purported actions were said to have facilitated the raising of more than $3 billion between 2021 and 2024. In response to the charges, Adani Group stocks experienced an initial decline, subsequently recovering partially following clarification from Adani Green Energy that its executives were not implicated in violating the U.S. Foreign Corrupt Practices Act.
Meanwhile, Abu Dhabi’s International Holding Company (IHC) has reiterated its trust in the Adani Group, emphasizing the group's dedication to green energy and sustainability. With around $100 billion in assets under management, IHC has invested substantial amounts in Adani Green Energy, Adani Transmission, and Adani Enterprises during 2022. Despite reducing its stakes in Adani Green Energy and Adani Transmission, IHC has increased its holding in Adani Enterprises to over 5%.