IDBI Bank shares tank over 5 per cent on concerns over pisciculture loans

The CBI has registered cases in the two of the five complaints with regard to loans aggregating to Rs 772 crore for pisciculture.
File Image of IDBI Bank Ltd.
File Image of IDBI Bank Ltd.

NEW DELHI: Shares of IDBI Bank today plunged over 5 per cent after the company said the CBI has registered cases in the two of the five complaints with regard to loans aggregating to Rs 772 crore for pisciculture.

The company's stock dropped 5.25 per cent to end at Rs 72.25 on BSE. During the day, it plunged 8.39 per cent to Rs 69.85. On NSE, shares of the company fell by 5.31 per cent to close at Rs 72.20.

In a regulatory filing the company yesterday said, the bank had sanctioned pisciculture loans during the period from FY 2009 to FY 2013 at a few branches of erstwhile state of Andhra Pradesh.

Subsequently, these cases were parked in five branches, Basheerbagh in Hyderabad, Guntur, Rajahmundry, Bhimavaram and Palangi.

"It was later discovered that some of these loans (52 aggregators with principal outstanding of Rs 772 crore) were fraudulently obtained by some industrialists who stood as common guarantor for these loans and were referred to as aggregators, by submitting fake lease documents of non-existent fish ponds," the bank said.

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