The Central Bureau of Investigation (CBI) has initiated a preliminary inquiry into the Rs. 950 crore alleged bad loan given by IDBI bank to debt-ridden Kingfisher Airlines, ignoring the company’s negative credit ratings and net worth.
“The enquiry has been registered to see how the bank sanctioned the loan when the airlines had a negative net worth as well as the credit rating. It was the first exposure to the bank. There was no need for the bank to take the exposure outside the consortium when already other bank loans were getting stressed,” a senior
CBI official said, requesting anonymity.
Agency sources added they will seek clarification from the senior management of the bank and Vijay Mallya, promoter of Kingfisher airlines. The debt-laden airlines stopped operations from October 2012.
“We have not received any communication and are unaware of any such enquiry,” said Prakash Mirpuri, vice-president, corporate communications of the UB Group, promoted by Mallya.
The IDBI Bank management was not available for comments.
According to CBI sources, the agency has registered 27 preliminary enquiries and cases with regards to bad loans given by public sector banks to various corporates, the latest being two cases registered against Bhushan Steel and Prakash Industries where the CMD of Syndicate Bank was allegedly bribed by these companies.