In the wake of increased scrutiny around public banks' exposure to Adani Group assets, Bank of Baroda (BoB), one of India’s biggest state-backed lender, has clarified that it will entertain any borrower requests as long as it meets the bank's underwriting standards. This may also include extending loans to the Gautam Adani-led Adani Group as well, Bloomberg reported.
As per Bloomberg, the chief executive officer (CEO) of Bank of Baroda, Sanjiv Chadha said that BoB will extend loans to the Adani Group, or any other borrower, if it meets the lender’s underwriting standards.
"Irrespective of borrower, you have underwriting standards and you stick to them in good times as well as bad times,” Bloomberg quoted BoB CEO as saying. Before this, Chadha reportedly also said that Bank of Baroda’s total exposure to the Adani Group was about a quarter of what is permitted under the Reserve Bank of India (RBI’s) framework.
The statement from Bank of Baroda comes at a time when the Adani Group companies have been facing trouble in the market on various fronts, after Hindenburg Research published a report accusing the group of fraud and market malpractice.
(Note: This story has been updated as per latest available information)