How IDBI bank broke every rule in the book to loan Kingfisher Airlines 900 crore rupees

In what could put IDBI in dock, CNN-IBN has accessed papers which show how the bank threw all the rules out of the window to lend Kingfisher Airlines (KFA) a sum of Rs 900 crores.

Here are the main points:

# KFA was defaulting on loans when money was given for loans above `10 crore'.

# Company rating should be at least triple 'b', Kingfisher was only double 'b'.

# KFA was lent funds on brand value of 'kingfisher', which means it was an unsecured loan.

# Kingfisher didn't use the loan money for the end use mentioned in IDBI documents.

# KFA used 263 crore taken from IDBI for debt servicing.

# Bank did little to invoke personal/collateral securities to recover the loan.

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