“SBI has informed that currently there is no such plan to provide additional loan to Kingfisher Airlines,” the finance minister said in the Rajya Sabha to a question as to whether the SBI had initiated a proposal to bail out the airline by sanctioning fresh loan of Rs1,500 crore
New Delhi: State Bank of India (SBI) has no plan to provide fresh loans to the cash-strapped Kingfisher Airlines, reports PTI quoting finance minister Pranab Mukherjee.
“SBI has informed that currently there is no such plan to provide additional loan to Kingfisher Airlines,” he said in the Rajya Sabha to a question as to whether the SBI had initiated a proposal to bail out the airline by sanctioning fresh loan of Rs1,500 crore.
Kingfisher Airlines has a debt of Rs7,057.08 crore and the financial crunch has hit its operations with dozens of flights being either cancelled or clubbed.
Tax authorities have added to its woes by freezing its bank accounts for non-payment of taxes.
Asked about total exposure of SBI and other banks to the Vijay Mallya-promoted airlines at the end of the current fiscal, Mr Mukherjee said “since the accounts as on 31 March 2012 are to be finalised, it is not possible to ascertain the outstanding of KFA”.
He also said that SBI, leader of consortium of lenders to the air-carrier, has informed that the account of the airline is ‘sub-standard’ with eight public sector banks (PSBs) and ‘standard’ with five PSBs as on February 2012.
“Consortium agreed to ‘holding on operations’ whereby a portion of the credits into the account are appropriated for reducing irregularities in the accounts of banks,” he said.
However, all interest and dues up to August 2011 have been paid, he said.
The consortium of the lending banks has been meeting regularly to deliberate and decide upon the course of steps to be taken. The last such meeting was held on 17th February.
Badgered from all sides, Kingfisher Airlines was last week suspended for non-payment of dues from three IATA platforms affecting its passenger and cargo bookings through agents.
Kingfisher’s suspension from the IATA Clearing House (ICH) implied that it would not be able to settle accounts for services provided to them by other airlines or related companies.
The airline was hit hard on Saturday when state-run HPCL stopped jet fuel supplies, causing some cancellations and delays to some other flights. Fuel supplies were, however, resumed on Sunday. Kingfisher owes Rs515-Rs520 crore in fuel bills along with interest.
Kingfisher, which reported a net loss of Rs444.26 crore in the December quarter, has never made a profit since inception in May 2005. It suffered a loss of Rs1,027 crore in 2010-11 and has a debt of Rs7,057.08 crore.
EMERGE has the potential to significantly improve access to risk capital for emerging companies.
The National Stock Exchange announced the launch of its SME platform. The new platform will be called ”EMERGE”, as it symbolises the aspirations of a large number of entrepreneurs actively participating in the India growth story and having the potential to unlock value and emerge on a bigger stage. It will also provide investors with exciting opportunities to invest in growing businesses. EMERGE has the potential to significantly improve access to risk capital for emerging companies.
Ravi Narain, MD & CEO of NSE, said “Globally, junior platforms have succeeded by coordinated efforts of exchanges, merchant bankers and investors including angel investors and VC/PE community. We are confident that India today has all the ingredients for the platform to become an engine of growth for deserving companies to raise capital in an efficient manner ’’
Chitra Ramkrishna, jt. managing director, NSE, said “issuers may opt for either call auction or continuous market depending on the investor profile. NSE will also encourage issuers to undertake certain voluntary standards for improved governance and transparency”.
Head of the SME project at NSE, Ravi Tyagi said “We have actively engaged with all the stakeholders and we hope that different classes of investors will see this as an opportunity to invest in companies having promising business models.
Continuous engagement and collaboration with all stakeholders is imperative for the long term success of the SME platform and we are committed to devoting effort and resources towards that. Merchant bankers will play a very important role in the success of ‘EMERGE’.”
Subex wins managed services contract for ROC fraud management from leading Indian services operator, Idea Cellular.
Subex, a global provider of business support systems for communications service providers, announced that it has won a million dollar contract for providing its industry leading ROC fraud management solution through managed services for Idea Cellular for postpaid and roaming. This is a fully outsourced managed services deal, where Subex will be running the operator’s entire fraud management operations.
In the late afternoon, Idea Cellular was trading at around Rs98.10 per share on the Bombay Stock Exchange, 1.92% up from the previous close.