Monday, September 30, 2013

SBI’s exposure in Kingfisher Airlines under CBI lens

New Delhi: State Bank of India is under Central Bureau of Investigation’s lens for its large exposure to failed Kingfisher Airlines.
“We are examining the borrowing from one public sector bank and investigation is in progress,” a CBI official told Business Line when asked about the status of CBI’s probe in the Kingfisher Airlines matter.
The 17-bank consortium, led by SBI, had an exposure of around Rs 7,000 crore to KFA. Of this, SBI’s exposure was close to Rs 1,700 crore. But in recent months the consortium partially offloaded the shares kept as collateral by the Vijay Mallya-controlled Kingfisher Group.
The consortium had realised about Rs 1,000 crore from the sale of shares, it is learnt.
The investigations are in the early stages, said the CBI official.
30/09/13 Business Line