MUMBAI: Barclays Plc has been a long-standing bank for Gautam Adani, an Indian billionaire, but a recent report by Hindenburg Research has led the bank to reduce its exposure to Adani. This has caused a setback for Barclays, as Adani has been a significant driver of the bank’s Asian growth. Executives are now more cautious about expanding business with Adani until a regulatory probe is concluded. While Barclays hasn’t severed ties with Adani, it has renegotiated some loans, including financing for a cement deal with Holcim AG. The situation highlights the challenges faced by global banks when dealing with potentially risky clients like Adani. Despite the tensions within the firm, Barclays remains one of Adani’s 12 core relationship banks. However, the bank is more hesitant due to potential reputational risks. Adani has denied the allegations made by Hindenburg and stated that all its relationship banks, including Barclays, are secure in their investments. Barclays’ ties to Adani have been particularly strong, as it was one of the first global banks to establish a relationship with the conglomerate and has the only major bank with its Asia-Pacific head based in India. Barclays has been a top arranger of bonds for Adani and has provided loans to the group. The bank’s relationship with Adani has helped boost its revenue from Asia and solidify its investment-banking presence in India. However, with the recent reduction in exposure to Adani, Barclays will need to find new sources of revenue in India.
Barclays, Gautam Adani’s Trusted Bankers, Exercise Caution following Hindenburg Report
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