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IDBI Bank Ltd has rebutted reports that that it was being probed by the Central Bureau of Investigation for lending to Vijay Mallya's Kingfisher Airlines.
It is the airlines and not the bank which is under CBI's radar, the bank has said.
Responding to media reports, IDBI Bank has said in its filings with the stock exchanges that it was one among the 16 banks that as consortium lenders had lent money to Kingfisher Airlines Ltd (KAL). With the airline defaulting on its loan repayment to the banks, financial institutions have together initiated recovery proceedings against KAL and its promoter.
IDBI Bank has clarified that "preliminary enquiry initiated by CBI a few months ago is against the borrower, KAL, and not against IDBI Bank'', as was reported in the media.
The bank was giving all the information and documents required by the investigating agency into the issue and "will continue to extend full assistance to the agency in the said enquiry'', IDBI Bank has said.
Shares of the bank were trading at Rs 81.65, up by 55 paise, on the BSE.
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