Cash-ridden Airlines will possible have to shut if the saga continues. Total seventeen banks have an exposure of Rs 7,000 crore to Kingfisher Airlines.
"They have not been able to come up with a plan. The consortium thought we cannot give them more time and we have decided to recall the loan. The recommendation will go to the Board...each bank will go to their respective boards and a notice will be served to Kingfisher Airlines following which there will be a legal recourse," Shymal Acharya, deputy managing director (mid-corporates) of SBI said.
Banks had to consider this drastic step as the airline's management could not come up with any credible revival plan. Its flying licence has been cancelled since January 1, 2013. It stopped flying since October 1, 2012, following a strike, reports PTI.
Shares of the company recovered a bit and was seen trading at Rs 11.08, lower by 0.45% on BSE at 10.30 am IST.