Loan to Adani after due diligence, says SBI after Cong barb
21 Nov 2014 5:32 AM IST
Under attack, the State Bank of India (SBI)’s chairperson Arundhati Bhattacharya on Thursday came out in defence of the decision to lend one billion dollars to Adani Group during Prime Minister Narendra Modi’s just concluded visit to Australia for the development of Carmichael coal mine.
The explanation came after Congress spokesperson Ajay Maken, questioning the public sector bank’s decision, told reporters, ‘What was the propriety of the SBI giving the loan to Adani, who was sitting next to prime minister during the visit, at a time when some five foreign banks have denied credit to the group for the project?’ 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 during which the SBI chairperson was also present in Australia.
Querying into 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. ‘When five top foreign banks have already declined to fund Adani’s project, what was the need and the sense in giving such a huge loan to him from the hard-earned money deposited by the common people?’
Maken said, ‘Did the SBI do the due diligence? If it did so why it is not declaring the MoU? On what conditions it was done? And what was the liability?’ Alleging ‘crony capitalism’ behind the loan to Adani, he said the government was only interested in working for the rich and its promised ‘good days’ have come only for them.
Reacting to Congress’ attack, Arundhati Bhattacharya said that SBI has signed an MOU with the Adani group and after all due diligence, the SBI board will take the final call on it. On the issue of environment clearances, she said that SBI has spoken with the Queensland government and if green peace organisation will protest anywhere its not a matter of SBI’s concern.
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.
Govt has no role in SBI’s loan to Adanis: BJP
Steering clear of any controversy over grant of USD 1 billion loan by SBI to Adani Group, BJP on Thursday said the deal is between the bank and industry and the government has no role in the matter even as the ruling party hit out at Congress for dragging the Prime Minister into it. ‘It is a matter between the bank and the industry and the government has nothing to do with it... If Congress views the visit of the head of the country like this and make petty statements, it is lowering the dignity and prestige of the country,’ BJP spokesperson Shahnawaz Hussain said.
The explanation came after Congress spokesperson Ajay Maken, questioning the public sector bank’s decision, told reporters, ‘What was the propriety of the SBI giving the loan to Adani, who was sitting next to prime minister during the visit, at a time when some five foreign banks have denied credit to the group for the project?’ 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 during which the SBI chairperson was also present in Australia.
Querying into 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. ‘When five top foreign banks have already declined to fund Adani’s project, what was the need and the sense in giving such a huge loan to him from the hard-earned money deposited by the common people?’
Maken said, ‘Did the SBI do the due diligence? If it did so why it is not declaring the MoU? On what conditions it was done? And what was the liability?’ Alleging ‘crony capitalism’ behind the loan to Adani, he said the government was only interested in working for the rich and its promised ‘good days’ have come only for them.
Reacting to Congress’ attack, Arundhati Bhattacharya said that SBI has signed an MOU with the Adani group and after all due diligence, the SBI board will take the final call on it. On the issue of environment clearances, she said that SBI has spoken with the Queensland government and if green peace organisation will protest anywhere its not a matter of SBI’s concern.
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.
Govt has no role in SBI’s loan to Adanis: BJP
Steering clear of any controversy over grant of USD 1 billion loan by SBI to Adani Group, BJP on Thursday said the deal is between the bank and industry and the government has no role in the matter even as the ruling party hit out at Congress for dragging the Prime Minister into it. ‘It is a matter between the bank and the industry and the government has nothing to do with it... If Congress views the visit of the head of the country like this and make petty statements, it is lowering the dignity and prestige of the country,’ BJP spokesperson Shahnawaz Hussain said.
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