IDBI Fraud: Top officials of PSU banks booked for fraud

CBI has booked former promoter of Aircel, Managing Director of Indian Bank and Syndicate Bank along with the former CMD of IDBI in connection of a loan fraud.

In 2014, IDBI Bank had granted a loan to British Virgin Island-based Axcel Sunshine Limited which turned NPA in December 2015. CBI is investigating the case and has found that loans were granted by top officials of IDBI Bank ignoring the existing protocols and guidelines. The agency also discovered that in 2010 IDBI gave a loan to a Finland-based company which went bankrupt in 2013.

Both Axcel Sunshine and Win Wind Oy were controlled by former Aircel promoter C Sivasankaran. The two companies defaulted on loans worth Rs. 600 crore granted by IDBI Bank.

Top officials, MD & CEO of Indian Bank, Kishor Kharat (former MD & CEO of IDBI Bank) and MD & CEO of Syndicate Bank Melwyn Rego (former Deputy MD of IDBI Bank) and former CMD of IDBI Bank, M S Raghavan have been named in a FIR filed by the CBI.

On Friday, IDBI Bank closed at Rs. 66.95 per share, up by 0.53 per cent on BSE.