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KR Srivats Industry chamber PHDCCI has knocked on the doors of Finance Minister Arun Jaitley, over IDBI Bank’s move to cut credit to corporates without prior information.
IDBI Bank has also taken an “extreme step” of dishonouring cheques with reason “insufficient funds” in spite of having sufficient drawing power/balance, said PHDCCI President Anil Khaitan in a letter to Jaitley.
This extreme step taken by the IDBI Bank will further tighten the liquidity position of companies dealing with the bank and their accounts would become NPA, the letter added.
Khaitan said that the government was well aware of the industry’s severe cash flow problems post demonetisation and GST.
He said that the government should advise IDBI Bank to take a realistic view of their own problems and not pass them 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.
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