State Bank of India (SBI), the lead lender to Airlines");'> Kingfisher Airlines ( KFA), will not consider any fresh loans for the debt-laden carrier until it raises new equity itself, a senior executive of the state-owned bank said.
SBI is studying a viability report prepared by its investment banking arm, SBI Capital Markets, and any decision on further lending to KFA will be based on that as well as be conditional, deputy MD R Venkatachalam said.
Desperately strapped for cash, KFA stands on the brink of collapse after multiple flight cancellations and the resignation of dozens of pilots. The airline, which has not turned a profit since it was founded in 2005 and is carrying debt of at least $1.3 billion, has asked for Rs 2,000-3,000 crore in loans from banks to carry out its dayto-day operations.
Mr Venkatachalam said there was no government pressure on the consortium of banks to bail KFA out. 'They have to get the capital first. Without that it will definitely be difficult for banks to lend,' said Mr Venkatachalam, who said he was upset by 'sensational' and 'unethical' media reports about SBI riding to KFA's rescue.
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SBI is studying a viability report prepared by its investment banking arm, SBI Capital Markets, and any decision on further lending to KFA will be based on that as well as be conditional, deputy MD R Venkatachalam said.
Desperately strapped for cash, KFA stands on the brink of collapse after multiple flight cancellations and the resignation of dozens of pilots. The airline, which has not turned a profit since it was founded in 2005 and is carrying debt of at least $1.3 billion, has asked for Rs 2,000-3,000 crore in loans from banks to carry out its dayto-day operations.
Mr Venkatachalam said there was no government pressure on the consortium of banks to bail KFA out. 'They have to get the capital first. Without that it will definitely be difficult for banks to lend,' said Mr Venkatachalam, who said he was upset by 'sensational' and 'unethical' media reports about SBI riding to KFA's rescue.
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