SBI initiates process to Downsell Rs.11,000 crore Loan Exposure in Adani Group’s Ganga Expressway Project

State Bank of India (SBI) is currently in the process of downselling half of its nearly ₹11,000-crore loan exposure to the Ganga Expressway project, developed by the Adani Group. After disbursing loans to the longest tolled road project in India, SBI is now in talks with financial institutions, including the National Bank for Financing Infrastructure and Development (NaBFID), Punjab National Bank (PNB), and power finance companies, to downsell a portion of its exposure.
According to a banking industry source, SBI is downselling Ganga Expressway loans to banks and financial institutions and is in the final stages of the process. The bank initially underwrote the entire loan amount with the intention of downselling a portion. The decision on how much to retain and how much to downsell will be determined by SBI’s risk management team.
It is common practice in infrastructure financing for banks to downsell portions of large loan exposures. At least four lenders, including NaBFID, REC, PFC, and Union Bank of India, have expressed interest in purchasing the debt from SBI, as per another banking source.
The Ganga Expressway, connecting Meerut with Prayagraj in Uttar Pradesh, is set to become India’s longest expressway based on a toll system. Adani Group secured contracts in 2021 to build three stretches of the 594-km expressway, while the fourth section was awarded to IRB Infrastructure. Adani is responsible for constructing 464 km, accounting for 80% of the entire project.
SBI had refrained from downselling a portion of the loan in the previous year. However, the bank may decide to proportionately sell down the loan to all lenders based on their respective sanctions, according to the source. No immediate responses were received from SBI, NaBFID, REC, or Union Bank of India regarding requests for comment.