MUMBAI: Bank of Baroda (BoB) will continue to give loans to the Adani Group as long as it satisfies the lender’s underwriting standards. Sanjiv Chadha, managing director and chief executive officer of BoB said the lender will consider extending loans to the group for its Dharavi redevelopment project.
Adani Group, with its `5, 069 crore bid, won Dharavi redevelopment project in November last year. The chief of public sector lender added that he is not concerned about the market volatility around Adani firm shares. The bank has underwriting standards and it follows them all the time, he said.
The statement comes as a relief for Adani Group as shares of its group companies have suffered a huge crash following a report from US- based short seller Hindenberg Research that alleged share manipulation and irregularities by the ports-to-media conglomerate.
The bank’s CEO had earlier said that banks give corporate loans not based on share prices but by book value and assets as collateral. While announcing its results earlier this month, the public lender had said that it has ‘absolutely no concern’ about its exposure to the Adani Group. The public sector bank has already said that Adani Group entities are not among one of its largest borrowers.