Brief: IDBI Bank Says No Flouting Of RBI Norms In Loans To D.S. Kulkarni Developers

D S Kulkarni Developers

26/06/2018 15:17

June 26 (Reuters) - IDBI Bank Ltd  IDBI.NS :
    * CLARIFIES ON NEWS ITEMS ON 5 BANKS FLOUTING RBI NORMS AND
CONSORTIUM INCLUDING CO APPROVING LOANS TO DSK
    * IDBI BANK HAS EXPOSURE OF 471.8 MILLION RUPEES TO D.S.
KULKARNI
DEVELOPERS
    * BANK NOT IN POSSESSION OF FORENSIC REPORT PREPARED BY EOW;
CANNOT COMPREHEND WHICH SPECIFIC RBI NORMS ARE ALLEGED TO HAVE
BEEN FLOUTED
    * PRIMA-FACIE THERE APPEARS TO BE NO FLOUTING OF NORMS WHILE
SANCTIONING AND DISBURSING LOAN BY IDBI
    * DISBURSALS WERE MADE TO ESCROW ACCOUNT MAINTAINED WITH
LEAD BANK
SBI BASED ON REQUEST OF DSK
    * NOTES THAT THERE ARE CERTAIN TRANSACTIONS IN NATURE OF
ADVANCES
FOR SUPPLIES AND CONSTRUCTION
    * CONSTRUCTION IS NOT COMMENSURATE WITH PAYMENTS EFFECTED;
BANK IS
IN THE PROCESS OF EXAMINING TRANSACTIONS
    * LOAN IS FULLY SECURED, RECOVERY MEASURES HAVE BEEN
INITIATED

Source text for Eikon:  ID:nBSE7KvF8k 
Further company coverage:  IDBI.NS 

 ((Reuters.Briefs@thomsonreuters.com;))