Bank of Baroda will continue to lend to the Adani Group, according to Sanjiv Chadha, the lender’s chief executive officer and managing director. But, he stated that the company must continue to meet the underwriting standards.
Details about Bank of Baroda has stated that it will continue to lend to the Adani group
According to a report by Bloomberg, Chadha is not concerned about the market volatility involving Adani equities. “You have underwriting criteria and you adhere to them in good and bad times,” Chadha said in an interview, according to the report.
Chadha stated that the lender will consider lending to the group for its Dharavi redevelopment project, which it bid Rs 5,069 crore for.
The public lender stated earlier this month that it has “absolutely no concern” about its exposure to the Adani Group. Following the release of its December quarter results, the bank stated that its exposure to the conglomerate is one-fourth of the RBI’s big exposure framework.
According to the bank’s management, 30% of the entire exposure to Adani Group is a joint venture with public sector enterprises.
Apart from BoB, State Bank of India and Life Insurance Corporation have exposure to the conglomerate, which had a market collapse following Hindenburg Research’s research accusing the firm of stock manipulation and accounting fraud.
VT Somanathan, Finance Secretary, had stated that there was no reason for depositors, policyholders, or investors in PSU banks or LICs to be concerned. He claims that SBI and LIC’s involvement is well below the amount that investors should be concerned about.