Saturday, August 9, 2014

#IDBI’ Rs.950 crore loan to #Kingfisher Airlines under #CBI scanner

#IDBI’ Rs.950 crore loan to #Kingfisher Airlines under #CBI scanner
The Central Bureau of Investigation (CBI) has registered a preliminary inquiry to inquire into the role of IDBI and Kingfisher Airlines. IDBI Bank had sanctioned Rs.950 crore to Kingfisher Airlines at a time when Kingfisher had a negative net worth and negative credit rating.

Taking cognizance of this issue Central Bureau of Investigation (CBI) on Saturday has registered a preliminary enquiry against IDBI Bank Ltd and Kingfisher Airlines Ltd,to find out the real motive behind IDBI Bank’s decision to lend Rs.950 crore to Kingfisher Airlines.

Kingfisher Airlines owes Rs.7,500 crore to a consortium of banks led by State Bank of India. In February 2013, bankers publicly stated they lost faith in the management’s ability to revive the company. Banks that had then initiated recovery measures, have been able to recover Rs.550 crore by selling the equity they held in the troubled airline.
Last week, CBI arrested Sudhir Kumar Jain, the chairman of state-run Syndicate Bank Ltd over allegations that he was seeking bribes to favour debtors.
As of March 2014, gross NPA for the 40 listed banks was Rs.2.42 trillion, up 34.41% from Rs.1.8 trillion a year ago.