(Moves position of 'to India' in paragraph 7, no other changes)

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Israel wants Adani to continue to invest in the country

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Abu Dhabi's IHC maintains its outlook on Adani investment

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Adani's listed company shares recover some losses

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Indian lenders reviewing Adani group exposure

By Rishika Sadam and Siddhi Nayak

Nov 28 (Reuters) - Indian banks are reviewing their

Adani exposure and whether they need to tighten due diligence,

eight bankers said on Thursday, after the group's billionaire

founder Gautam Adani was indicted by U.S. authorities over an

alleged $265 million bribery scheme.

Adani Group's listed stocks, which at one point saw as much

as $34 billion wiped off their market value, meanwhile recovered

ground as some partners and investors rallied behind it.

State Bank of India will not stop lending to

ongoing Adani projects that are nearing completion, two sources

told Reuters, but will exercise caution when disbursing loans to

ensure all terms and conditions are being met.

Bank of India, Union Bank, ICICI Bank

, Canara Bank, IDBI Bank and RBL

Bank, which have relatively smaller exposures to the

Adani Group, are undertaking similar exercises, sources said.

A regulatory source aware of the development said from a

banking system perspective that no entity was over-exposed to

the Adani group and there was no cause for concern.

Earlier on Thursday, Israel said it wants Adani Group to

continue to invest there, adding that the U.S. allegations were

not "problematic" from its perspective.

"We wish Adani and all Indian companies continue to invest

in Israel," Israel's Ambassador to India Reuven Azar told

Reuters in an interview.

The Adani Group holds a 70% stake in Haifa port in northern

Israel and is involved in projects with Israeli firms, including

manufacturing military drones and commercial semiconductors.

Adani and seven others are accused by U.S. authorities of

being part of a scheme to pay bribes to secure Indian power

supply contracts. The Adani Group has denied the allegations.

The Indian ports-to-power conglomerate has also received

public backing from Abu Dhabi's International Holding,

which maintained its outlook on investments in the group.

"Our partnership with the Adani Group reflects our

confidence in their contributions to the green energy and

sustainability sectors," IHC said on Wednesday, adding that it

"continues to evaluate relevant information and developments".

IHC, which is one of Adani's key foreign investors, boosted

its stake in the group's Adani Enterprises flagship to

more than 5% last year after selling down investments in Adani

Green Energy and Adani Energy Solutions.

Shares in Adani Green, the company at the centre of the

bribery allegations, rose by 10% on Thursday, hitting the cap on

gains in a single session for a second consecutive day, with

Adani Energy also up the maximum 10%.

The total losses in the value of Adani Group's 10 listed

companies have narrowed to $14.5 billion from about $34 billion,

the low reached on Tuesday after the U.S. indictments.

FALLOUT

Global investors say worries of a wider spillover from the

Adani allegations will hurt sentiment in India, but not the

long-term outlook, as they wager one of the world's

best-performing markets will get back on track next year.

Investors expect a stronger spotlight on governance and

disclosure, and perhaps some volatility, but say the affair has

not challenged the reasons they are in India in the first place

- for exposure to a growing economy and a huge consumer market.

Indian Prime Minister Narendra Modi's government has not

commented on the allegations against the Adani Group and has

blocked opposition party demands for a debate on them.

Both houses of India's parliament were suspended temporarily

within minutes of opening on Thursday as opposition lawmakers

disrupted proceedings for the third day over the issue.

Many opposition parties accuse Modi and his Bharatiya Janata

Party (BJP) of favouring Gautam Adani and blocking

investigations against him, charges which both have denied.

The Adani Group, which is among India's biggest business

empires, has been under scrutiny since January 2023 short seller

Hindenburg Research accused it of stock manipulation, which the

group has denied, and questioned its high debt levels.

Adani Green said on Wednesday that Adani had been charged by

U.S. Securities and Exchange Commission (SEC) for alleged

violations of securities law and faced potential fines but had

not been charged under the U.S. Foreign Corrupt Practices Act.

The civil action launched by the SEC runs in parallel to

U.S. federal prosecutors' indictment against Adani and others.

Repercussions from the indictment have mounted for the Adani

Group over the past week, with credit ratings agencies cutting

the outlook for some of the listed companies' bonds.

French oil major TotalEnergies, said on Monday it

would not make any more investments in the Adani Group until

there was clarity over the allegations and consequences. Total

has a 20% stake in Adani Green.

Kenya has scrapped a $2 billion procurement project that was

to give Adani control of the country's main airport and it

shelved a 30-year, $736-million public-private partnership,

signed by Adani Energy with its energy ministry in October.

Closer to home, Sri Lanka said it would investigate all

Adani-related projects in the island nation, while Bangladesh is

investigating power generation contracts signed under the

previous prime minister, one of which was with Adani Power.