The stocks of leading nationalized bank - State Bank of India (SBI) declined by as much as 2.4 percent during today's trade session amidst the indefinite suspension of Jet Airways operations.
The lenders led by the biggest lender - State Bank of India has rejected the airlines plea for release of emergency funding for continuing its regular operations and this led the Jet Airways to cancel its operations indefinitely starting from yesterday night.
The shares of the private carrier fell as much as 34 percent for the first time in the last 10 years.
Currently, Jet Airways has suspended all its domestic as well as international operations with immediate effect. The last operating flight flew between Amritsar - Mumbai at 22:20 IST on Wednesday.
In a statement to its employees, the company's CEO Vinay Dube stated that "Late last night, we were informed by SBI, on behalf of the consortium of Indian lenders that they are unable to consider our request for interim funding of Rs 983 crore. Because no emergency funding from the lenders or any other source of funding is forthcoming, it will not be possible for the company to pay for fuel or other critical services to keep the operations".
The shares of SBI were seen trading at Rs 310.90 per scrip, down by 1.55% in Bombay Stock Exchange during today's trade session whereas the scrips of Jet Airways plunged by a record 31.08% to settle down at Rs 165.75 per piece.