February 2, 2024: More than a year after providing loans for the Adani Group’s Ganga Expressway project, the State Bank of India (SBI) is currently in the process of down-selling half of its nearly Rs 11,000-crore loan exposure to India’s longest tolled road project. The bank is engaged in discussions with financial institutions, including Punjab National Bank (PNB), the National Bank for Financing Infrastructure and Development (NaBFID) and some power finance companies, to down-sell half of its exposure.
The down-selling is in the final stage of the process. The SBI initially underwrote the entire amount with the intention of down-selling a portion of it. The bank’s risk management team will determine the extent to which it will retain and down-selling. In infrastructure financing, it is a common practice for banks to down-sell portions of substantial loan exposures. In the previous year, SBI refrained from down-selling a portion of the loan. The bank may opt to proportionately down-sell the loan to all lenders based on their sanctions, as per the source.
The Ganga Expressway in Uttar Pradesh, connecting Meerut with Prayagraj, is set to become India’s longest toll-based expressway. In 2021, Adani secured contracts from the Uttar Pradesh government to construct three stretches of the 594-km Ganga Expressway, with the fourth section awarded to IRB Infrastructure. Of the total length, the Adani Group is responsible for building 464 km from Budaun to Prayagraj, constituting 80% of the expressway project.
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Dhwani is a content management expert with over five years of professional experience. She has authored articles spanning diverse domains, including real estate, finance, business, health, taxation, education and more. Holding a Bachelor’s degree in Journalism and Mass Communication, Dhwani’s interests encompass reading and travelling. She is dedicated to staying updated on the latest real estate advancements in India.
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