View: Why Adani’s grip on banks is tighter than his hold on markets

economictimes.indiatimes.com:

Adani’s crucial relationships have held up surprisingly well. One, his proximity to India’s government appears intact, even though opposition politicians have relentlessly attacked the businessman from Prime Minister Narendra Modi’s home state of Gujarat for currying favors, allegations that Adani has always denied — and Modi has just ignored.

Two, the former centibillionaire’s clout with bankers seems to have escaped unscathed. The acquisitive Indian conglomerate, which expanded its assets nearly threefold in four years, continues to have sizable relationships with 20 global banks.

It’s broadly the same number that did business with the group until last year. The likes of Sumitomo Mitsui Financial Group Inc., DBS Group Holdings Ltd., Mitsubishi UFJ Financial Group. and Standard Chartered Plc, appear to be comfortable with their exposure.

Now that Adani has demonstrated that he can deal with extreme liquidity stress, and his crucial equity partners — like the French oil giant TotalEnergies SE — are returning with more money, bankers may have an easier time selling the story to their credit committees.

Overseas institutions are also a better bet for Adani. Tapping Indian banks, especially state-run lenders, would be a tad cheaper, but might invite greater political scrutiny ahead of next year’s general elections. Besides, capital markets are still nervous.

Ever since the New York-based Hindenburg Research accused the infrastructure giant of stock-price manipulation and accounting fraud in January, equity investors have hauled it over the coals. Although the group denied the allegations, it had to cancel a share issue by Adani Enterprises Ltd., the flagship. Soon after, France’s Total hit the pause button on a