Adani and Agarwal.

Yesterday, "After falling non-stop for seven consecutive trading sessions, shares of Nifty stock Adani Enterprises were on a downward trajectory on opening but soon bounced back to rally 24.5% from day's low to hit day's high at Rs 1,373.30." ET. One reason was that "lenders led by the State Bank of India (SBI) that are conducting an annual review of Adani Enterprises have decided to maintain status quo on credit limits sanctioned for Gautam Adani's flagship company." SBI is a public sector bank, hence controlled by the government. "It is estimated that out of the $9 billion exposure that Indian banks have to the group, about $1.5 billion is yet to be used, Bankers said there is no internal decision to curtail Adani Group's sanctioned loans, be it term loans or working capital." pressreader. Another public sector bank, "Bank of Baroda will extend loans to the conglomerate if it meets the lender's underwriting standards, said Sanjiv Chadha, chief executive officer and managing director, adding that he's not concerned about the market volatility around Adani stocks." ET. Of course, not. Baroda is a city in Gujarat. "Stating that the embattled Adani Group carries 3 times as much debt as it should, valuation guru Aswath Damodaran says it shows bad business practice and not con as alleged in the Hindenburg report." ET. Even if there is no fraud should public sector banks be lending more of our money to the Adani group? "Hindenburg's report suggested that the promoters of the Adani Group pumped up the stock prices, using fake companies and by relying on the services of the infamous Ketan Parekh network of brokers," wrote Pramit Bhattacharya. Ketan Parekh was a stockbroker who manipulated prices of certain stocks through circular trading with money borrowed from banks from 1998 to 2001. Shares of Zee telefilms zoomed up from Rs 127 to Rs 10,000 per share. wikipedia. The Securities and Exchange Board of India (Sebi) "enjoys a wide range of powers to regulate listed firms, stock exchanges, and market intermediaries." "But, "In cases involving large companies, Sebi is often found dragging its feet." Another company may also be in trouble. "Anil Agarwal's once-London-listed Vedanta Resources has a pile of debt, including a $1 billion bond due in January," wrote Andy Mukherjee. Vedanta Resources owns 65% of Hindustan Zinc which "has a cash pile of $2 billion" and "garners between $300 million and $600 million ebitda every quarter". Agarwal wanted to sell THL Zinc Ltd, Mauritius to Hindustan Zinc for $3 billion in phases over 18 months. However, the Indian government, which owns 30% of Hindustan Zinc, "threatened to explore legal avenues" to stop the deal. "Shares of Vedanta Ltd crashed nearly 9 percent (intraday) on Tuesday (yesterday), the biggest fall since September 16 last year," and so, "In the previous eight sessions, the stock has lost nearly 15 percent." "One of the reasons for stock plunge is an over 40 percent rise in bond yields of its parent company Vedanta Resources, ET Now reported." Jump in yields mean a crash in bond prices. Vedanta Resources credit rating is at B-, which is junk. Will banks led to Anil Agarwal? He is not from Gujarat.