Banks have Rs 40,000-cr debt on airline companies, says finance minister

New Delhi: As many as 25 banks had debt of Rs 40,621 crore on airline companies until June 30 this year, Parliament was informed on Wednesday. The debt was huge, considering that Rs 47,056 crore were given to the carriers since 2009-10 till the last day of June. Banks have Rs 32,961 crore of securities against which loans were given, data given by Finance Minister P Chidambaram in the Lok Sabha showed. Wherever, the advances are not covered by tangible security, exposure of these banks is secured by a charge on the cash flows of the airline companies, Chidambaram said.
09/08/12 Business Standard

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Categories: Indian Aviation- In General Aug 2012