New Delhi: Japan’s biggest banks, including Mizuho Financial Group Inc, Sumitomo Mitsui Financial Group Inc and Mitsubishi UFJ Financial Group Inc are planning to maintain ties to billionaire Gautam Adani despite US bribery charges. However, the other global firms like Barclays, are reassessing their exposure to the Gautam Adani-led conglomerate
Bloomberg reported that Mizuho Financial Group Inc. expects that the US SEC charges against Adani and his company’s executives won’t have a ‘long-lasting impact’. Sumitomo Mitsui Financial Group Inc and Mitsubishi UFJ Financial Group Inc. are also planning to continue with their deals with Adani Group and are open to fresh financing.
The backing from Japanese banks comes as a major relief for Adani Group as the conglomerate has come under national and international scrutiny post US indictment. Company’s major projects in foreign countries like Sri Lanka, Bangladesh, and Kenya have come under scrutiny.
Indian Banks Review Adani Group Loan Portfolios
Meanwhile, Reuters reported that Indian banks, including State Bank of India, ICICI Bank, Union Bank, Canara Bank, IDBI Bank, RBL Bank and Bank of India, are contemplating on their exposure to Adani Group. SBI has reportedly sanctioned loans of 338 billion rupees ($4 billion) to Adani Group.
Gautam Adani, his nephew Sagar Adani and some executives of Adani Group have been indicted in New York over their roles in an alleged multibillion-dollar bribery and fraud scheme. The allegations claim that Adani and seven other defendants agreed to pay about $265 million in bribes to Indian government officials to obtain contracts expected to yield $2 billion of profit over 20 years, while developing India’s largest solar power plant project.
Meanwhile, Adani Green Energy Ltd (AGEL) stated in a stock exchange filing that Gautam Adani and other defendants in the case have not been charged under the US Foreign Corrupt Practices Act. It said that they are charged under charges, including securities and wire fraud that are punishable with monetary fines.
Japanese banks, including Mizuho, Sumitomo Mitsui, and Mitsubishi UFJ, are continuing their business relationships with the Adani Group despite recent US bribery charges against Gautam Adani and executives. This support contrasts with some global firms like Barclays, who are reassessing their exposure. Indian banks are also reviewing their involvement, with SBI holding significant loans. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
