The bank had initiated recovery actions to recover dues from the borrower in August 2016, it said.
IDBI Bank today said the CBI has examined documents related to its loan exposure to the companies of former Aircel promoter C Sivasankaran. The state-owned bank had given a loan to Axcel Sunshine Ltd in February 2014, which had turned into a non-performing asset (NPA) or bad loan in December 2015, IDBI Bank said in a regulatory filing. It was responding to exchanges with regard to a news article that the CBI has booked ex-Aircel (telecom firm) promoter Sivasankaran’s firms in Rs 600 crore loan fraud case.
“CBI in this context has been examining certain documents relating to the loan given by IDBI Bank and have spoken to the senior officers of the bank, who had handled the case,” IDBI Bank said. “The officers are providing the requisite information and clarification to the investigating authorities,” it added. IDBI bank said the loan given to Sivasankaran’s firms which turned bad has been fully provided for. The bank had initiated recovery actions to recover dues from the borrower in August 2016, it said.
On April 26, CBI officials informed that the agency has registered a case against Sivasankaran’s two firms and CEOs of Syndicate Bank as well as Indian Bank for allegedly defaulting on loans worth Rs 600 crore taken from IDBI Bank. Former IDBI CMD Kishor Kharat, now MD and CEO of Indian Bank, and Syndicate Bank MD and CEO Melwyn Rego, who was Deputy MD of IDBI Bank, were booked by the CBI.