Money & Banking

Kingfisher continues to be a bad asset: SBI chief

PTI New Delhi | Updated on January 19, 2012

king

Kingfisher Airlines’ largest creditor SBI on Thursday said the company continues to be a bad asset and the carrier will have to come with an equity infusion plan, even as the Vijay Mallya-promoted airline is knocking at the government’s door for more time to pay loans.

“Kingfisher continues to be NPA (non-performing asset). The company will have to infuse more equity,” SBI Chairman Mr Pratip Chaudhuri told reporters here.

“Kingfisher loan has become NPA for the last one month or so. I don’t think Kingfisher loan has reached that stage that loan would have to be sold,” he said, adding, no fresh sanctions are being done to the airline.

On equity infusion from promoters in Kingfisher, he said, “The company will have to come with a proposal. They have not come up with any proposal.”

Airlines, including Kingfisher, have to get equity, he said, adding, “whosoever brings in equity or capital or interest free capital is a welcome. We don’t have any particular preference or negative list.”

SBI, the leader of the consortium of banks that have lent funds to Kingfisher Airlines, has an exposure of Rs 1,457.78 crore to the struggling firm. SBI’s exposure is the highest among any of the lenders to the airline, followed by IDBI Bank (Rs 727.63 crore), Punjab National Bank (Rs 710.33 crore), Bank of India (Rs 575.27 crore) and Bank of Baroda (Rs 537.51 crore).

The carrier is in a financial mess and struggling to service its loans, which have run up to over Rs 6,000 crore.

Published on January 19, 2012

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like