Loan given to Kingfisher when airline was doing well: IDBI Bank

With the CBI inquiring into the Rs 950 crore loan given by IDBI Bank to Kingfisher Airlines, the bank's CMD, M S Raghavan, yesterday said the loan was given when the airline was doing well and some particulars on this have already been submitted to the investigating agency, reported PTI.

"The loan was given in 2008-09 when the airline was in a good condition and doing well... Our credit committee had also approved it," Raghavan told reporters here.

Some particulars regarding the matter have already been submitted to the CBI and more information will be given in a couple of days, according to Raghavan.

Pointing out that some other banks had also financed the airline, Raghavan without elaborating, said a SBI-led consortium had been making efforts for the recovery of money.

The CBI has started a preliminary inquiry into the Rs 950 crore alleged loan given by IDBI Bank to the airline.

On the loan to Bhushan Steel, he said the bank had a moderate exposure, but declined to give details.

Maintaining that IDBI Bank was adopting a cautious approach in financing in infrastructure in view of the economic slowdown, Raghavan said its total exposure stood at Rs 53,000 crore but lending could rise when activities revive.

Stating that lending to retail and priority sector will increase gradually compared to corporate sector, he said last year the corporate sector received about 78 per cent of lending while retail sector got 22 per cent.

The Bank's corporate lending has been reduced to 72 per cent while it was raised to 28 per cent in retail sector, Raghavan said, adding the target is to achieve corporate- retail lending ratio to 60:40 by the end of this fiscal.

Share of agricultural lending increased from four to 18 per cent, while advances and deposits recorded about 15 per cent growth, he said.

Many new branches will be opened by the Bank which now has 1,473 branches and 2,634 ATMs across the country, he said, adding, Odisha has 44 branches and 19 more branches will be opened by the end of this fiscal.

Read more about: idbi bank, kingfisher
Story first published: Tuesday, August 12, 2014, 9:20 [IST]
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