IDBI Bank's crony capitalism?

There is some disturbing news from IDBI Bank. Five serving officers and ex-executives of IDBI Bank have been named by CBI in the Rs.950 crore loan sanction to Kingfisher Airlines in 2009. These employees are to be questioned by the Enforcement Directorate (ED).

Those named includes - Yogesh Agarwal, ex-CMD IDBI Bank; four members of credit committee -  B K Batra, O V Bundellu, R Bansal and S K V Srinivasan.

The CBI has stated that there was a slew of meetings between Mallya and key bank executives even as the Kingfisher Airlines was going under. This goes on to reiterate the Cover Feature which mentions exactly this nexus between bankers, politicians and corporate honchos.

Surprisingly though, the stock price of IDBI Bank did not tank as much as expected; it is currently down less than 1%. It might have the ex-CMD but it does not take away the fact that the Bank did indulge in such under-the-table deals and that is more damaging to the reputation.