CBI has registered a case against Mallya, Director of defunct Kingfisher Airlines; the company; A Raghunathan, Chief Financial Officer of the Airlines; and unknown officials of IDBI Bank.
The company said it will not comment on the matter.
CBI has registered a case against Mallya, Director of defunct Kingfisher Airlines ; the company; A Raghunathan, Chief Financial Officer of the Airlines; and unknown officials of IDBI Bank.
It is alleged that the loan was sanctioned in violation of norms regarding credit limits. The CBI sources said an FIR into the alleged violations was registered recently as part of its wide probe into criminal aspects of loans declared to be non-performing assets by public sector banks.
The sources said there was no need for the bank to take the exposure outside the consortium.
“It was first exposure to the bank. There was no need for the bank to take the exposure outside the consortium when already other loans were getting stressed,” a senior CBI official, probing the matter, had earlier said.
The bank will have to explain reasons for extending the loan to the airlines, ignoring its own internal report which has warned against such a move.
The debt-laden airlines stopped operations in October 2012. The CBI sources said the agency has registered a total of 27 inquiries and cases with regards to “bad loans” given by public sector banks to various corporates in 2013.
IDBI Bank stock price
On December 10, 2015, IDBI Bank closed at Rs 85.00, up Rs 0.85, or 1.01 percent. The 52-week high of the share was Rs 95.70 and the 52-week low was Rs 52.45.
The company’s trailing 12-month (TTM) EPS was at Rs 5.63 per share as per the quarter ended September 2015. The stock’s price-to-earnings (P/E) ratio was 15.1. The latest book value of the company is Rs 141.24 per share. At current value, the price-to-book value of the company is 0.60.