The debt-laden Kingfisher Airlines, which owes 17 banks about Rs 7,000 crore, does not pose any systemic risk, RBI Deputy Governor K C Chakrabarty said today.
The debt-laden Kingfisher Airlines , which owes 17 banks about Rs 7,000 crore, does not pose any systemic risk, RBI Deputy Governor K C Chakrabarty said today.
When asked about the troubles at Kingfisher Airlines, Chakrabarty said that "it does not pose any systemic risk to the banking system".
He was talking to reporters on the sidelines on an SME event organised by the Bombay Chamber of Commerce and Industry here.
The aviation regulator DGCA had recently served a show-cause notice to the company asking why its licence should not be revoked.
Within the lenders consortium, SBI has the single largest exposure with Rs 1,580 crore, followed by IDBI Bank (Rs 720 crore), Punjab National Bank (Rs 435 crore), Bank of India (Rs 575 crore), Bank of Baroda (Rs 530 crore), Central Bank of India (Rs 420 crore), UBI (Rs 350 crore), Corporation Bank (Rs 150 crore), and Federal Bank (Rs 80 crore which is not a loan but an en-cashed bank guarantee to BPCL ).
Kingfisher Air stock price
On May 25, 2015, Kingfisher Airlines closed at Rs 1.50, down Rs 0.06, or 3.85 percent. The 52-week high of the share was Rs 3.93 and the 52-week low was Rs 1.16.
The latest book value of the company is Rs -166.59 per share. At current value, the price-to-book value of the company was -0.01.
READ MORE ON debt, Kingfisher Airlines, RBI, K C Chakrabarty, SME, DGCA, SBI, IDBI Bank, Punjab National Bank, Bank of India, Bank of Baroda, Central Bank of India , UBI, Corporation Bank, Federal Bank, BPCL, SME Stepup
Set email alert for
ADS BY GOOGLE
video of the day
See choppy mkt till earnings weak, be stock-specific