Govt seeks PSU banks' aviation credit data; banks hope for relief
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The government has asked PSU banks for data on loans given to airlines industry, a move which has sparked some hopes among banks that the Centre may step in to protect their interest.
There are fears that banks may have to set aside cash as a provision against the loans turning bad.
Banks have to provide data on the loans given to different airlines and the nature of exposures - working capital, term loan, guarantees, letter of credit, equity and any other instrument.
Banks' highest exposure is to Air India where they have lent close to Rs 43,000 crore, which is undergoing debt restructuring. But lenders are more concerned about their Rs 7,000-crore loan outstanding with Kingfisher Airlines. (Economic Times)
There are fears that banks may have to set aside cash as a provision against the loans turning bad.
Banks have to provide data on the loans given to different airlines and the nature of exposures - working capital, term loan, guarantees, letter of credit, equity and any other instrument.
Banks' highest exposure is to Air India where they have lent close to Rs 43,000 crore, which is undergoing debt restructuring. But lenders are more concerned about their Rs 7,000-crore loan outstanding with Kingfisher Airlines. (Economic Times)
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