Mumbai/Kolkata: Banks with exposure of more than Rs 1,500 crore to SpiceJet met with the senior management of the budget carrier last week to discuss the company's financial situation. The Kalanithi Maran-promoted airline has been facing rough weather following a liquidity crunch, but the lenders said they aren't currently worried about the outstanding loans.
Allahabad Bank, Citibank, City Union Bank, HDFC Bank, ICICI Bank, State Bank of India and YES Bank are the bankers to the airline company, according SpiceJet's latest annual report.
To secure their exposure, the banks have discussed the option of calling for additional share from promoters. However, for now the banks have not exercised that option.
"We have met the senior management of the company and we are not worried of our exposure," said N Kamakodi, managing director and chief executive of City Union Bank. The bank has an outstanding loan of Rs 200 crore. "Our loan is secured by immobile collateral, deposits and margins," said Kamakodi.
09/12/14 Economic Times/Economic Times
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Allahabad Bank, Citibank, City Union Bank, HDFC Bank, ICICI Bank, State Bank of India and YES Bank are the bankers to the airline company, according SpiceJet's latest annual report.
To secure their exposure, the banks have discussed the option of calling for additional share from promoters. However, for now the banks have not exercised that option.
"We have met the senior management of the company and we are not worried of our exposure," said N Kamakodi, managing director and chief executive of City Union Bank. The bank has an outstanding loan of Rs 200 crore. "Our loan is secured by immobile collateral, deposits and margins," said Kamakodi.
09/12/14 Economic Times/Economic Times
