Wednesday, September 27, 2017

Air India ties up with PNB, IndusInd for Rs 3,250 cr loan

Mumbai: Air India has tied up with public sector lender Punjab National BankBSE -1.24 % and private lender IndusIndBSE 0.80 % to secure loans to the tune of over Rs 3,000 crore for meeting working capital requirements.

The airline expects the two banks to disburse the amount by next week, a source close to the development said.

Earlier this month, the disinvestment-bound Air India had floated tenders for availing government guarantee backed INR short-term loans totalling up to Rs 3,250 crore in the first phase to meet its urgent working capital.

Banks were asked to submit their financial bids by September 19, indicating the amount of government-guaranteed short-term loans they were willing to offer.

"Punjab National Bank and IndusInd bank have won the mandate to lend us loans worth Rs 3,250 crore. They are expected to disburse the amount next week," the source told PTI here.
27/09/17 PTI/Economic Times