Kingfisher should infuse Rs 2k cr for revival: SBI chief

Tags: Kingfisher, SBI, News
Kingfisher Airlines needs to invest at least Rs 2,000 crore to restart its operations, said one of its lender SBI's chairman Pratip Chaudhuri.

SBI is the lead banker in the 17-lender consortium that extended Rs 7,000 crore loans to the now grounded Kingfisher Airlines. The state-run bank has an exposure of Rs 1,500 crore to the carrier. The debt has not been serviced since January, 2012.

To a question, Chaudhuri also said right now SBI is not contemplating any legal action against the carrier as the door for negotiations is still open.

"In order to restart operations, Kingfisher Airlines needs to infuse at least Rs 2,000 crore as capital. We are still holding talks with the company and following up also," Chaudhuri told reporters here.

Chaudhuri said the bank was holding talks with the carrier every week.

If necessary, some buildings and non-core assets might be disposed, he said.

Kingfisher is saddled with mounting losses and debts. It has been grounded since October 1 following strike by pilots over non-payment of salaries. The airline's licence has also been temporarily suspended and aviation regulator DGCA has told the airline that it will be restored only when it submits a revival plan.

As per the revival plan submitted to DGCA last year, Kingfisher had said it would require about Rs 652 crore over the next 12 months for running its operations.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Modi’s big wins in Haryana, Maharashtra are major milestones

    The results of the assembly elections in Maharashtra and Haryana are pretty much on the lines of the exit polls which suggested that the BJP was going

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

<b>Riskfactor</b>: Pitfalls of know-alls

The over-confidence effect is a well-established bias in which a ...

Parvez Imam

Where survival depends on greed

Far away in another galaxy hangs a planet occupied by ...

Bubbles Sabharwal

Why life is an instrument of self-expression

You know the old saying that goes like: misery loves ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture