Adani Group stocks experienced a sharp decline on Thursday, November 21, after billionaire Gautam Adani faced accusations from U.S. authorities of participating in a multi-year scheme to pay $250 million in bribes to Indian officials. The alleged bribes were aimed at securing favorable terms for solar power contracts. As a result, the combined market capitalization of all Adani Group-listed companies fell by ₹2.45 lakh crore. Several group firms reached their lower trading limit for the day.
Impact on PSU Banks
Public sector bank stocks also took a hit, with the Nifty PSU Bank Index dropping by 5% on Thursday morning. Banks and NBFCs hold approximately 36% of the Adani Group’s total debt, amounting to over ₹88,000 crore. The three largest PSU banks—State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda (BoB)—account for over ₹40,000 crore in loans to Adani.
- SBI: ₹27,000 crore
- BoB: ₹5,380 crore
- PNB: ₹7,000 crore
Private banks such as Axis Bank, ICICI Bank, and HDFC Bank also have notable exposure to Adani’s debt.
Stock Performance
- SBI: Down over 5%
- BoB: Fell 8%
- PNB: Dropped around 5%
Private banks, including Axis Bank, HDFC Bank, and ICICI Bank, also saw declines in their share prices following the news.
Details of the Alleged Bribery Case
U.S. prosecutors have charged Gautam Adani, 62, his nephew Sagar Adani, and other associates with paying over $250 million in bribes to Indian government officials between 2020 and 2024. The bribes allegedly helped secure solar energy contracts with profit potentials exceeding $2 billion. Click here to read Adani US Controversy.
The charges also claim the scheme was concealed from U.S. banks and investors, who had provided substantial financing for the projects. An Adani spokesperson dismissed the allegations as “baseless,” refuting claims made by the U.S. Department of Justice and the U.S. Securities and Exchange Commission against Adani Green directors. Click here to read Adani US Controversy.
U.S. law permits the prosecution of foreign corruption cases if they involve connections to American investors or financial markets. Click here to read Adani US Controversy.
