State Bank of India has finally sanctioned its part of the recapitalisation assistance of Rs 200 crore to IFCI. With this, the entire 1,000 crore bail-out package has been sanctioned, though Rs 350 crore is yet to be disbursed by SBI and Industrial Development Bank of India.
IDBI, despite sanctioning its share of Rs 200 crore, has, however, released only Rs 50 crore, which has been reinvested by IFCI in IDBI's debt instruments.
When contacted IDBI chairman and managing director P P Vora said the Mumbai-headquartered institution would release the remaining amount shortly.
"With SBI sanctioning its part of the commitment, we hope the entire amount (Rs 1,000 crore) to come to us by the end of the week," IFCI chairman and managing director V P Singh said.
The government has already released the Rs 400 crore assistance that it had promised to the cash-strapped institution, while Life Insurance Corporation sanctioned its share of Rs 200 crore.
