MUMBAI: Adani Group's domestic lenders do not plan to cut off the conglomerate from utilizing sanctioned but unused credit lines for fear their action could backfire and lead to defaults, four bankers said.
It is estimated that out of the $9 billion exposure that Indian banks have to the group, about $1.5 billion is yet to be used.
Bankers said there is no internal decision to curtail Adani group's sanctioned loans, be it in term loans or working capital. While term loans fund capital expenditure, working capital is utilized for operational expenses.
"It would be foolish to stop disbursing sanctioned loans as there is no repayment delay, let alone default," said one of the four bankers cited above. All of them requested anonymity.
"If we do not let him draw the credit lines, work on existing projects might stop, and that is not good for our exposure," the banker said.
Mint has reviewed a copy of the document that suggests Indian banks are willing to increase the sanctioned limits from $9 billion to $11 billion.
"The Adani group is in constant dialogue with banks.
This story is from the February 06, 2023 edition of Hindustan Times.
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This story is from the February 06, 2023 edition of Hindustan Times.
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