November 20, 2014 8:35 PM

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SBI defends decision to lend $ 1 billion to Adani Group

State Bank of India SBI's chairman Arundhati Bhattacharya has defended the decision of lending 1 billion dollars to Adani Group for the development of Carmichael mine in Queensland Australia. Talking to reporters in New Delhi today, Mrs. Bhattacharya said that SBI has signed an MOU with the Adani group and after all due diligence, the SBI board will take the final call on it. On the issue of environment clearances, she said that SBI has spoken with the Queensland government and if green peace organisation will protest anywhere its not a matter of SBI's concern. SBI had decided to lend up to one billion dollars to Adani Mining, the Australian subsidiary of Adani Enterprises for the Carmichael mine in Queensland in Australia. Carmichael mine has massive blocks of untapped coal reserves and Adani group aims to build the project by end of 2017.Earlier today, Congress questioned the decision of State Bank of India to give USD one billion loan to Adani Group for the development of Carmichael coal mine during Prime Minister Narendra Modi's just concluded visit to Australia. Talking to reporters in New Delhi, party spokesperson Ajay Maken alleged that the government is giving undue favour to the group and promoting crony capitalism. He said that six international banks including CitiBank and HSBC had denied the group to give any financial assistance for its mines project but SBI agreed to do so. Mr. Maken said the Bank is also not showing the Memorandum of Understanding signed in this regard. Meanwhile, BJP spokesperson Shahnawaz Hussain has said that the matter is between the bank and the Adani group and government has nothing to do with it. He said it is up to the Bank to take decision to whom it want to give loan or not.

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