IDBI still considering bank acquisition: Vora

Referring to the recent promulgation of ordinance giving powers to recover dues from defaulting parties, Vora said 17 notices have been issued for an amount aggregating Rs 1,640 crore and people have already started approaching the institution for settlement.

IDBI was negotiating a line of credit worth euro 52 million from KFW of Germany and has received an in-principle approval. Currently, the details were being worked out, he said, adding IDBI has also signed an agreement for another credit line with Asian Development Bank for $100 million and withdrawals would commence soon.

IDBI’s deputy managing director T. M. Nagarajan said the funds would mainly be used for infrastructure lending. Answering a shareholder’s query on siphoning of funds by steel sector, Vora said the matter was being studied in detail and if any case was detected, action could be taken.

Shareholders elected R. V. Gupta (former deputy governor of RBI) J. J. Irani (Tata Sons Director) and M. G. Bhide (former bank of India CMD) as directors on IDBI board. Vora said IDBI has set aside Rs 200 crore for financing movies. The FI has committed Rs 70 crore for nine movies.

He said three films — Aankhen, Kuch Tum Kaho Kuch Hum Kahen and a Telugu movie — have been released and entire amount has been recovered. About Dabhol power project he said ‘under the IDBI act, we are precluded from discussing individual cases but all possible measures are being taken to resolve this issue’.

Referring to corporatisation of IDBI, he said the draft report has already been submitted to the government, which was studying it. Vora ruled out the existence of any proposal for merging IFCI and IDBI. On inducting a strategic foreign investor in IDBI Bank with sale of 26 per cent stake, IDBI sources said investors have laid down several conditions, which were not acceptable to the FI.