Adani issue: Primary consideration for investors should be returns and efficacy of cash flow: Abizer Diwanji
Abizer Diwanji, Founder, NeoStrat Advisors LLP, says people will take the decision on the basis of whatever their compulsions are. Institutional investors, especially from the US, will have bigger compulsions in their country, being answerable to their own investors, and they may take a different call. The primary consideration for a normal investor should be returns and the efficacy of cash flow.
As far as we have been covering banking, there is a reputational risk, there is a financial risk. But despite that, you have seen that Japanese lenders may continue to support Adani. How would these banks be assessing the situation according to you?
Abizer Diwanji: First of all, banks are very focused on lending and lending to specific projects which have a high probability of cash flows, that is the most important thing. Now, given the group's ability to construct and execute contracts well, I think from a credit risk perspective which is the main criteria on which lending is done, most people would take a view that there is no problem with the credit.
If it is a governance issue or any other issue, those will be taken as a secondary aspect. They are important, but they will be taken as secondary aspects. The Japanese banks have a focus on India as a country and the infrastructure build that they wish to finance, look at Japanese companies that have entered the financing space, there are a couple of them that are also bidders for Yes Bank as well as for IDBI Bank. Their credit focus on India is very bullish. And
