State-run banks have lent Rs 6,901.86 crore to Kingfisher Airlines

New Delhi: The government on Tuesday said state-run banks have lent Rs 6,901.86 crore to the cash-strapped Kingfisher Airlines.
Minister of state for finance Namo Narain Meena said public sector banks ( PSB) had so far an exposure of Rs 5,792.66 crore through fund-based and non-fund-based limits in the airline.
Also, they had put in Rs 1,109.20 crore through investment in cumulative redeemable preference shares (CRPS) and non-convertible cumulative redeemable preference shares (NCCRPS), Meena said in a written reply in the Rajya Sabha.
Defending the lenders, including the State Bank of India, who have been alleged to have bought overvalued shares of Kingfisher as collateral, the minister said this was done under the master debt recast arrangement (MDRA) with the airline.
13/12/11 IANS/Economic Times

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Categories: Kingfisher Dec 2011