New Delhi: The Central Bureau of Investigation (CBI) has unearthed lapses on the part of the IDBI bankBSE 0.59 % officials who were instrumental in the sanctioning of Rs 950 crore to Vijay Mallya's now defunct Kingfisher Airlines.
According to CBI, the executive committee of IDBI bank set up to screen the loan application of Mallya gave a favorable report despite company ratings as BB which is considered to be 'risky'. CBI sources said the committee did not raise red flag at the time the loan was being processed. As per bank norms, the minimum eligibility required is BBB that stands for Better Business Bureau for any financial institution to even consider a request for a loan from the company, said CBI. CBI sleuths also said the executive committee in its loan approval cited the "brand value" and "reputation of borrower". "There was no due diligence exercised by the members of the committee," said a top CBI official.
26/10/15 Rahul Tripathi/Economic Times
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According to CBI, the executive committee of IDBI bank set up to screen the loan application of Mallya gave a favorable report despite company ratings as BB which is considered to be 'risky'. CBI sources said the committee did not raise red flag at the time the loan was being processed. As per bank norms, the minimum eligibility required is BBB that stands for Better Business Bureau for any financial institution to even consider a request for a loan from the company, said CBI. CBI sleuths also said the executive committee in its loan approval cited the "brand value" and "reputation of borrower". "There was no due diligence exercised by the members of the committee," said a top CBI official.
26/10/15 Rahul Tripathi/Economic Times
