State Bank of India ready to lend $1 billion to Adani – SBI defends itself from criticism

Indian National Congress questioned the decision of State Bank of India to give $1 billion loan to Adani group for the development of Carmichael coal mine during Prime Minister Narendra Modi’s just concluded visit to Australia.

He alleged that the Prime Minister appeared taking keen interest in “promoting” Adani in getting the loan worth Rs 6,200 crore during the visit in which the SBI chairman was also present. Questioning the logic behind the huge loan to the Adani, Maken wondered why the SBI was not showing the Memorandum of Understanding (MoU) signed with the Adanis for the project.

Reports said that the SBI has decided to lend up to USD one billion to Adani Mining, the Australian subsidiary of Adani Enterprises for the Carmichael mine in Queensland, Australia which has massive blocks of untapped coal reserves. The company aims to build the project by end of 2017.

The loan as and when it is extended would be one of the largest given out by an Indian bank for a foreign project.

State Bank of India (SBI) Chairperson Arundhati Bhattacharya on Thursday defended the country’s largest lender’s plan to lend Adani Group $1 billion for the Carmichael coal project in Queensland, Australia. She added the bank’s board was yet to finalise the loan’s disbursement.

Bhattacharya had signed a memorandum of understanding (MoU) for the loan with the Queensland government on the sidelines of Prime Minister Narendra Modi’s visit to Australia for a summit of the heads of G20 member countries.

“This is a memorandum of understanding (MoU); this is not a loan sanction. It will go through proper due diligence, both on the credit side, as well as on the viability side. All of that will be done. The board has to take a call; only then will the money be given,” Bhattacharya told reporters on the sidelines of Finance Minister Arun Jaitley’s meeting with the chiefs of state-owned banks here.

AdaniBJPCongressIndian National CongressModiRBISBI