Are there any moral hazards and potential systematic risks which can arise from the SBI-Adani Capital collaboration which the Indian regulators should watch out for?  

State bank of India has recently entered into a co-lending agreement with NBFC - Adani Capital Private Ltd for lending to farmers for purchase of farm equipment's and increase efficiency in farm operations. In the recent past, many major NBFC's like ILFS and DHFL have defaulted creating a major systematic risk.                

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The collaboration between State Bank of India SBI and Adani Capital for lending to farmers could potentially pose moral hazards and systematic risks t... View the full answer