Mumbai: The Kingfisher Airlines debt may impact the profitability of a clutch of banks, including the State Bank of India. Last week SBI classified its loan to the airline as a non-performing asset.
But most banks are expected to keep their net interest margin (NIM) stable in the third quarter. Incremental loan growth for banks has been 3 to 6 per cent. If the Kingfisher Airlines account is not classified as non-performing asset, the slippages will be lower in the third quarter in Bank of India and Oriental Bank of Commerce, according to a study by Standard Chartered Securities. Bank of India has an exposure of Rs 550 crore in Kingfisher.
Air India, GTL, Bharati Shipyard and the state electricity boards of Haryana, Rajasthan and Uttar Pradesh are the big accounts that are being restructured. The addition of just six accounts could increase the restructured loans by 20 to 60 per cent, according to the report.
10/01/12 Manju AB/Mydigitalfc.om
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