India's largest lender, State Bank of India (SBI) has ruled out the possibility of committing any fresh loans to the debt-ridden Kingfisher Airlines, which recently lost out its 6 slots in Mumbai International Airport (MIAL) to Indigo. As per SBI, any credible revival plan for Kingfisher would call for sinking of at least $500-700 million, which translates into Rs 2,500-3,000 crore. As per the state run bank, promoters of beleaguered airlines’ should consider fresh equity infusion to sustain any plan to take the airline off the ground.
Of the Rs 7,000 crore that Kingfisher owes to banks, State Bank of India (SBI) has the largest exposure of Rs 1,400 crore. IDBI Bank, with around Rs 700 crore, Bank of India has Rs 575 crore and Bank of Baroda has Rs 530 crore, are other with sizable exposures.
Earlier, in an effort to renew its operating license before it expires at the end of the year, which ultimately proved futile, grounded carrier Kingfisher Airlines, filed a revival plan with the Directorate General of Civil Aviation (DGCA) on December 24, 2012, which failed to specify when the airline will restart operations.