Why Indian banks are betting big on Adani Group
As of September 2025, Indian banks and financial institutions had ramped up their lending to the Adani Group, with their exposure rising over 50% to ₹1.3 lakh crore—now making up almost half of the conglomerate's overall borrowings.
Public sector banks and NBFCs have both noticeably increased their share, with sources attributing this to robust cash flows and long-term infrastructure investments, even as the group faces ongoing scrutiny.
Domestic lenders lead the charge
Even as US regulators investigate fraud and bribery allegations against the group, both Indian and foreign banks have upped their exposure—foreign bank loans rose 16% over the past year to ₹71,744 crore.
Meanwhile, dollar bond borrowing dipped due to fewer overseas issuances under regulatory pressure. Still, big domestic players like LIC keep investing.
Core businesses driving cash flow
Adani's core businesses—ports, power, and transport—are generating strong cash flows (over ₹60,000 crore), accounting for more than 80% of its earnings.
The group is also pouring $70 billion into green energy projects.
Despite all the noise around investigations into founder Gautam Adani's finances, steady performance in these sectors seems to reassure lenders.
Controversy aside, Adani's core businesses shine bright
Adani is working hard to refinance debt and improve credit ratings while global giants like Blackrock and Goldman Sachs remain major bondholders—even if new dollar bonds aren't flying off the shelves right now.
For young investors watching India Inc., it's a reminder: controversy aside, strong business fundamentals still matter when it comes to big money moves.