In a strategic pivot, domestic banks and financial institutions now account for 50% of Adani Group’s staggering debt, which totals more than ₹2.6 lakh crore. This marks a sharp rise from the 40% share recorded just a year earlier, underlining a deliberate move toward local borrowing amid favourable credit conditions.
What’s Behind the Shift?
- Debt Breakdown: Borrowings now surpass ₹2.6 lakh crore, with Indian lenders—banks and financial institutions—holding half of this load.
- Why Domestic Funding: A combination of lower local borrowing costs, especially following RBI rate cuts, and tighter credit spreads, due to rising credit ratings across Adani’s companies, has prompted the group to rely more heavily on Indian capital.
How the Shift Evolved
| Period | Domestic Share | Total Debt |
|---|---|---|
| FY24 (Mar ’24) | ~36% | ₹2.41 lakh crore |
| Sept ’24 | ~42% | ₹2.58 lakh crore |
| June ’25 | 50% | >₹2.6 lakh crore |
- Trend Since FY24: Indian lenders’ exposure grew from around 36% (
₹88,100 crore) in March 2024 to approximately 42% (₹1.08 lakh crore) by September 2024. - H1 FY25 insight: By September 2024, domestic lending had jumped by 53% compared to March, underlining a decisive strategic shift.
Implications of the Shift
- Financial Stability: Greater reliance on Indian banks can reduce exposure to volatile global funding and foreign currency risks.
- Confidence Boost: Improved credit ratings and institutional trust have enabled the group to tap into local markets more efficiently.
- Strategic Realignment: Aligning with domestic funding sources positions the group favorably amid global market fluctuations and regulatory geopolitical pressures.
