Adani row: Bank of Baroda says it will continue lending to the conglomerate; here’s why

Bank of Baroda will continue to lend money to the Adani Group, said the lender’s chief executive officer and managing director Sanjiv Chadha. He said that, however, the conglomerate has to continue meeting the underwriting standards.

According to a report by Bloomberg, Chadha is not concerned about the market volatility around Adani stocks. “You have underwriting standards and you stick to them in good times as well as bad times,” Chadha said in an interview, as per the report.

Chadha said that the lender will consider extending loans for the group for its Dharavi redevelopment project too, after it bid Rs 5,069 crore for the project.

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Earlier this month, the public lender had said that it has “absolutely no concern” about its exposure to the Adani Group. After announcing its December quarter results, the bank said that its exposure to the conglomerate is one-fourth of the large exposure framework of RBI.

30 per cent of the total exposure to Adani Group is a joint venture with public sector companies, the bank’s executive had said.

Apart from BoB, State Bank of India and the Life Insurance Corporation, also have exposures to the conglomerate that saw a stock rout following Hindenburg Research’s report that accused the group of stock manipulation and accounting fraud.

Finance Secretary TV Somanathan had earlier said that there was no cause for concern for depositors, policyholders or investors in any PSU banks or LIC. He said that the exposure of both SBI and LIC is far below the level where it should be a concern for investors.

Also read: Bank of Baroda says 'absolutely no concern' about its exposure to Adani Group

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