Adani Group: Banking Due Diligence Intensifies Amid Bribery Allegations

Indian banks are reassessing their exposure to the Adani Group following bribery allegations against its founder. Despite the fallout, the group's stocks are rebounding, supported by partners like Abu Dhabi's IHC. Global investors remain cautiously optimistic, albeit concerned about governance and potential market volatility in India.

Indian banks are intensifying their scrutiny of the Adani Group's financial ties after founder Gautam Adani faced U.S. bribery charges. Despite the initial market upheaval, the conglomerate's stocks are regaining stability as key partners continue to rally behind it.

Sources reveal that State Bank of India maintains lending to nearly completed Adani projects, albeit with heightened caution. Numerous other banks with smaller exposures are conducting similar reviews, ensuring compliance with all lending terms and conditions.

While some international skepticism persists, notable investors like Abu Dhabi's IHC have expressed optimism, upholding their investment in the conglomerate. The developments prompt discussions about governance and transparency within India's financial markets, though long-term prospects remain favorable.

(With inputs from agencies.)