SBI's exposure to SEBs Rs 7K cr, aviation Rs 2kcr: CFO
Most banks have burnt their fingers while lending money to the airline companies and are trying to further reduce exposure to the sector. Country’s largest lender the State Bank of India has an exposure of Rs 2000 crore to the aviation sector.
November 18, 2011 / 18:38 IST
Most banks have burnt their fingers while lending money to the airline companies and are trying to further reduce exposure to the sector. Country's largest lender the State Bank of India has an exposure of Rs 2000 crore to the aviation sector.
In an interview to CNBC-TV18, Diwakar Gupta, CFO of the bank said, "I think the exposure on the bank to the aviation sector should be in the range of about 2000 crore and I am not at liberty to comment on specific accounts."However, SBI has higher exposure to state electricity boards (SEBs) to the tune of Rs 7000 crore. This definitely has not dampened the spirits of SBI as Gupta explained that non-performing (NPA) problem is largely systemic and Q3 is expected to be better than the previous quarter.Below is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying video.Q: What is your exposure to the aviation sector and to specific companies?A: The exposure on the bank to the aviation sector should be in the range of about Rs 2,000 crore. I am not at liberty to comment on specific accounts.Q: What are you doing about fresh exposures to the sector? Have you stopped giving loans to aviation companies or restricted them in any fashion?A: The business verticals take a decision based on merits. In terms of the aviation sector, it will also depend on the consensus amongst bankers because nobody can take a decision entirely on his own or unilaterally. I am not privy to the current thinking in the verticals, but this is the way decision making will happen.Q: With regards to Kingfisher Airlines, there have already been two rounds of talks between the bankers and the management. Is any kind of debt restructuring plan in place? A: I wouldn
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