Kingfisher needs fresh equity to be viable: SBI

Posted By: Religare
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Kingfisher needs fresh equity to be viable: SBI
The country's largest commercial lender, State Bank of India (SBI) has said that the debt ridden Kingfisher Airlines may be out of trouble if it gets fresh equity to improve finances.

Raising a ray of hope for the sinking airline company, Pratip Chaudhuri, Chairman, SBI said, "Fresh viability is there for everyone to see. If they (Kingfisher) get more equity, the company is viable."

Commenting on the poor condition of the aviation sector, he said, "Aviation companies need fresh equity to improve their finances."

"However, these things don't happen overnight. There are protracted negotiations about price but the company (Kingfisher) is working hard on this. We are optimistic and expect equity to come," he added.

When asked about the SBI's exposure to cash-strapped Kingfisher Airlines, he said that the bank has not sent any recall notice to Kingfisher asking them to repay loan, but added that its "loan is at default".

Read more about: state bank of india, kingfisher
Story first published: Thursday, April 5, 2012, 13:31 [IST]
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