Adani Group faces scrutiny from Indian banks after US indictment

India's largest lender, State Bank of India (SBI), along with several other major Indian banks, is reassessing its exposure to the Adani Group after the conglomerate's chairman, Gautam Adani, was indicted by the US government in an alleged $265 million bribery case.

This development has prompted banks to strengthen their due diligence processes before extending new loans to the group.

Reports indicate that bankers from SBI, Bank of India, Union Bank, ICICI Bank, Canara Bank, IDBI Bank, and RBL Bank are closely examining the company's financial statements to ensure greater scrutiny during loan approvals.

Despite the controversy, SBI has clarified that it will continue to fund ongoing Adani projects nearing completion while implementing stricter conditions for future disbursements. SBI has the largest exposure to the Adani Group among Indian banks, having sanctioned loans amounting to ₹33,800 crore (approximately $4 billion).

The allegations against the Adani Group have significantly impacted its market valuation, with an estimated ₹2.87 lakh crore (approximately $34 billion) wiped out in the wake of the indictment. However, the conglomerate has received support internationally, with Israel reaffirming its willingness to collaborate with the group despite the US charges.

The Adani Group holds a 70% stake in Israel’s Haifa Port and has been involved in numerous strategic projects in the country, including a defence partnership through which Adani Defence & Aerospace exports military drones. These partnerships remain intact even as Israel continues its ongoing conflict with Gaza.

The situation highlights the dual challenges faced by the Adani Group—domestic scrutiny over its financial practices and international attention on its strategic partnerships. Indian banks are expected to proceed cautiously, balancing risk mitigation with support for critical infrastructure projects.