BIG relief for Gautam Adani after this announcement by Japanese banks, say they are ready to...

Japan’s top banks and several Middle Eastern financial institutions plan to maintain their support for Gautam Adani’s businesses, even as global lenders like Barclays Plc reconsider their exposure to the Adani Group.The development follows allegations of a $250 million bribery scheme involving Indian officials to secure inflated solar power contracts. The Adani Group has denied these accusations, calling them “baseless.”

According to reports, major Japanese banks, including Mizuho Financial Group, Sumitomo Mitsui Financial Group, and Mitsubishi UFJ Financial Group, view India as a key growth market and remain committed to Adani. Mizuho believes the charges will have minimal long-term impact and is open to new financing opportunities. 

Experts note that Japanese lenders have experience managing risks in emerging markets and are unlikely to significantly reduce their India exposure.

Their support is also influenced by Adani’s ties to the Indian government, the banks’ investments in cash-generating assets like ports and airports, and the expectation that any legal proceedings in the US will take years to resolve.

Middle Eastern banks, such as Emirates NBD Bank PJSC, share a similar stance, with no plans to withdraw existing commitments. They are reportedly open to lending for future Adani projects, citing strategic growth opportunities.

However, global banks like Barclays and Jefferies Financial Group are taking a cautious approach. Barclays, once a key financier for Adani, has paused its financial dealings with the group, while other US-based banks are reportedly reassessing their ties.