IDBI Bank says not being probed over Rs 950-cr loan to Kingfisher Airlines

State-run lender IDBI Bank Ltd said on Tuesday it is not being investigated by the Central Bureau of Investigation (CBI) over a Rs 950-crore loan to the now-grounded carrier Kingfisher Airlines Ltd.

The CBI has launched an initial probe over the Rs 950 crore alleged loan given by IDBI Bank to the airline, a spokeswoman for the agency said on Saturday.

“The preliminary enquiry initiated by CBI a few months ago is against the borrower…and not against IDBI Bank, as reported in the media,” the lender said in a stock exchange filing.

“The Bank has been providing all the information and documents sought by the agency in the matter and will continue to extend full assistance to the agency in the said enquiry,” it said.

IDBI Bank CMD M S Raghavan on Monday had said, the loan was given when the Kingfisher Airlines was doing well and some particulars on this have already been submitted to the investigating agency.

“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 had told reporters in Bhubaneswar.

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.

Vijay-Mallya led Kingfisher Airlines has been grounded since October 2012.

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.