One of India’s largest state-backed lenders has said it is willing to consider lending additional funds to the crumbling Adani Group, including financing a project to re-plan a slum that is among the world’s largest.
Sanjeev Chadha, CEO and Managing Director, said that Bank of Baroda will extend loans to the group if it meets the criteria for the lender, adding that he is not worried regarding the fluctuations in the shares of the group.
Those comments offer a degree of support to billionaire Gautam Adani following some banks refused to refinance a $500m bridging loan due next month. This came following a report issued last January by Hindenburg Research alleging the existence of financial corruption in the group, which led to the deterioration of the group’s assets. Recently, however, investor sentiment got a boost when the group said it would deal with upcoming debt maturities.
“We have standards for borrowing and we adhere to them in all circumstances,” Chadha said in an interview. He declined to go into detail regarding the bank’s overall exposure to the Indian business empire.
Chadha said earlier this month that Bank of Baroda’s exposure to the group was regarding a quarter of what was allowed under central bank controls.
State Bank of India, the country’s largest lender by assets, said on another occasion that it was exposed to regarding 270 billion rupees ($3.3 billion) to companies in the Adani group.
Chadha said Bank of Baroda would consider providing loans to the group for the Dharavi redevelopment project following the group provided 50.7 billion rupees for the slum reconstruction project last year.
