PHDCCI Raised Concern over IDBI bank's Abrupt Restrictions on Corporate Credit, Wrote letter to Finance Minister

Industry chamber PHDCCI has sought Finance Minister Arun Jaitley’s intervention over IDBI Bank’s move to cut credit to corporates without any prior information.

In a letter to the Finance Minister, PDHCCI President Anil Khaitan has written that the IDBI Bank has also taken an “extreme step” of dishonouring cheques with reason “insufficient funds” in spite of having sufficient drawing power/balance.

This extreme step taken by the IDBI Bank will further tighten the liquidity position of companies dealing with the bank and their accounts would become NPA, the letter added.

Pointing that the government was aware of the industry’s severe cash flow problems post demonetisation and GST, Khaitan said that the government should advise IDBI Bank to take a realistic view of their own problems and not pass them on to the borrowers.

IDBI Bank should be advised to continue with the existing sanction limits at least for a period of one year so that the companies can make alternate banking arrangements, Khaitan suggested.