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KFA can come out of crisis after capital infusion: SBI
Debt-ridden Kingfisher Airlines can come out of the crisis with the infusion of capital as it is still a "good brand", its largest creditor State Bank of India (SBI) said today.
Debt-ridden Kingfisher Airlines can come out of the crisis with the infusion of capital as it is still a "good brand", its largest creditor State Bank of India (SBI) said today.
"(Though) Kingfisher continues to be an NPA (non- performing asset)...we still have faith in the company. It is a good brand," SBI chief Pratip Chaudhuri told reporters here.
The loans to Vijay Mallya-promoted airlines, he added, are NPAs but "I don't think Kingfisher loan has reached that stage that loan would have to be sold".
The Kingfisher account has become a bad asset for the bank for last one month, he said, adding "the (promoters of) company will have to infuse more equity."
Although the carrier has not yet come out with any proposal, Chaudhuri said, with more favourable environment and business plans it should be able to come out of the current troubles.
"We are working with them to cure the default. When default is cured normal operations in account has to be resumed," he said.
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. The carrier is in a financial mess and struggling to service its loans, which have run up to over Rs 6,000 crore.
