Bank of India loans to airlines under Rs 40 bn

ALSO READ See latest News about Bank of India See previous management interviews See what other Experts & Brokerages are saying about Bank of India

State-run Bank of India's loan exposure to air carriers does not exceed Rs 40 billion, Executive Director M. Narendra told reporters on Wednesday.

The bank's FY11 credit growth so far was 21 percent, Narendra said on the sidelines of a FICCI conference.

Last week, the central bank had announced that it would allow banks to restructure their loan to the cash-strapped aviaton sector.

The Indian airline industry has been facing mounting debts due to the global downturn. However, the industry of late has been showing some signs of recovery.

State Bank of India Chairman OP Bhatt had also said that the bank's exposure to the aviation sector stood at Rs 3,000 - 4,000 crore and added that SBI was in talks with the Reserve Bank of India (RBI) to restructure its loans to airline companies.

(with inputs from agencies)