State Bank of India, which has the
largest exposure to crisis-ridden Kingfisher Airlines, on Monday said it has asked the carrier to raise fresh equity to the tune of Rs 800-1,000 crore if banks are to consider a second
restructuring of existing debt or extend fresh advances.
On whether the bank will consider making fresh advances to Kingfisher, SBI Managing Director Hemant Contractor said: "We have to be satisfied about the viability of the company. There is no point restructuring if the company's operations are not going to be viable."
PERSPECTIVE: Kingfisher hits an air pocket "We have asked them to come up with some fresh funds if the banks are to at all consider their request for restructuring. We want to see more funds coming from the company itself..."
The amount that the carrier should raise is about Rs 800-1,000 crore, Contractor told reporters on the sidelines of the WEF-CII organised India Economic Summit in national capital Delhi.
When asked whether banks have asked the airline to sell some of its assets to reduce its debt of over Rs 7,000 crore, Contractor said: "One thing that is being discussed is selling some of its assets. If they do, it is good or they would have to find some other means."
He also informed that SBI has Rs 1,400 crore exposure to the airline and that is a standard asset as of now. He was quick to add, "If the restructuring is successful, we will be able to maintain the current status."
Meanwhile, an official of the
Vijay Mallya-promoted airline told
PTI that the airline board is meeting in Mumbai to take stock of the situation.
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