Reserve Bank of India rules out SLR status for loans to Air India

Mumbai: The Reserve Bank of India ruled out statutory liquidity ratio status for loans to Air India, crippling efforts to revive the debt-laden national carrier. The central bank said it will convene a meeting of bankers in two weeks to work out a bail-out policy for companies that are on the verge of default.
RBI Governor D Subbarao on Tuesday said the central bank will not be comfortable treating loans to Air India as SLR.
He said deputy governors KC Chakrabarty and Anand Sinha will convene a meeting with 10 large banks to analyse the situation of non-performing assets. "They will see what measures have to be taken by the banks, if any, by the Reserve Bank, by central government, by the state government to ensure that the profitability and viability of the banking system is intact as it is now," he said.
The central bank does not see any sector specific concern though there are fears that NPAs in segments like power, telecom, discom would go up.
25/01/12 Economic Times

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Categories: Air India Jan 2012