Kingfisher Airlines in good health when loan was cleared: 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, on Monday said the loan was given when the airline 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 told reporters.

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 who was in Bhubaneswar to inaugurate the bank's Zonal Office.

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.

Raghavan said the new Zonal Office was a step towards empowering the Bank's regional network and encouraging business opportunities in the region.

The newly opened Zonal Office is in tune with the Bank's strategy to provide further autonomy to understand the local needs and extend financial assistance to the region, he said, adding, zonal centres will play a vital role in helping the Bank achieve its goal of expanding its retail loan and MSME loan portfolio in the state.

The Bank has set a target of doubling home loans and MSME disbursals in the zone in the next three years and offer multiple products to customers in these segments, he said.

For targeting housing finance customers, the bank has introduced a takeover scheme wherein customers can shift their housing loans to IDBI Bank without processing charges.

In addition, IDBI Bank has another scheme offering additional loan up to 100 per cent of the original loan sanctioned to those customers who have already transferred their housing loans to IDBI and require more funds, the CMD added.