Money & Banking

IDBI Bank credit facility withdrawal measures hurt corporates: PHDCCI

K.R.Srivats New Delhi | Updated on March 07, 2018 Published on March 07, 2018

Anil Khaitan, President, PHDCCI Kamal Narang

Seeks Jaitley's intervention on the matter

Industry chamber PHDCCI has knocked the doors of Finance Minister Arun Jaitley, complaining that IDBI Bank has without any prior information withdrawn/reduced sanctioned credit facilities to Corporates.

IDBI Bank has also taken an "extreme step" of dishonouring cheques with reason "insufficient funds" in spite of having sufficient drawing power/ balance, the PHDCCI President Anil Khaitan said in a letter to Jaitley.

This extreme step taken by the bank will further tighten the liquidity position of companies dealing with the bank and their account would become NPA, the letter added.

Khaitan said that the Government is well aware that the industry is facing severe cash flow problems post demonetisation and GST.

He said that Government should advise IDBI Bank to take a realistic view of their own problems and not pass it on to the borrowers.

IDBI Bank should be advised to continue with the existing sanction limits at least for a period of one year so that the companies can make alternate banking arrangements, Khaitan suggested.

Published on March 07, 2018

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