Bank of Baroda to continue lending to Adani Group, wants conglomerate to meet one condition

New Delhi: Amid the Hindenburg Research row and falling of shares, the Bank of Baroda will continue to lend money to the Adani Group. Sanjiv Chadha, CEO and Managing Director of the bank, said that they will continue to lend money while the only condition is that the conglomerate continues to meet the underwriting standards.

As per Bloomberg, Sanjiv Chadha is not concerned over the volatility of Adani Group’s shares and in an interview said that a firm has to stick to the underwriting standards in good and bad times. He added that BoB will consider giving loans for the conglomerate’s Dharavi redevelopment project also after it bid Rs 5,069 crore for the project.

Bank of Baroda’s exposure

Earlier, the bank said that there is no concern about its exposure to Adani Group. After announcing its December quarter results, BoB said that its exposure to Adani Group is one-fourth of the large exposure framework of RBI. Bank’s executive also said that 30% of the total exposure to the conglomerate is a joint venture with public sector companies.

State Bank of India and the Life Insurance Corporation also saw a dip in the stock price after the Hindenburg report, but Finance Secretary TV Somanathan said that the exposure of both SBI and LIC is quite below the concerning level.

Adani Group share prices

The share price of Adani Enterprises Ltd fell by 109 points today while Adani Power Ltd saw a 5% rise in the price. Meanwhile, Adani Green Energy and Adani Willmar are continuing the downward trend at the stock market.