Andhra Bank hits air pocket with Paramount Airways

Chennai: The heat of the problems that Paramount Airways has been having with the Directorate-General of Civil Aviation and the aircraft financiers (GE Capital Aviation Services) is now being felt by Andhra Bank. The bank has had to call its Rs 42-crore loan to the airline as a non-performing asset and make provisions for it. The Reserve Bank of India has recently allowed banks to restructure aviation loans, considering that most of the airlines are making losses. But a senior source in Andhra Bank said that such allowance would not help the bank, because the Paramount Airways loan has already been named NPA. The source said the bank has even invoked the personal guarantee of the airline's promoter, Mr M. Thiagarajan.
26/08/10 M. Ramesh/Business Line

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Categories: Paramount Airways Aug 2010