Friday, March 08, 2019

Resolution plan being worked out for Jet Airways, assures SBI chairman Rajnish Kumar

State Bank of India (SBI) chairman Rajnish Kumar on Thursday (March 7) said that a comprehensive resolution plan was being worked out with the lenders of Jet Airways, in a bid to put the ailing airline back on track.

Speaking at the Business Today - Money Today financial award function in Mumbai, Kumar said, "An overall comprehensive resolution plan is being worked out. There would be many elements, including conversion of debts of lenders into equity."

The cash-strapped airline has reportedly pledged its fixed deposits (FDs) worth Rs 1,500 crore with SBI to borrow Rs 225 crore, according to media reports.

Talking about the cash-strapped Infrastructure Leasing and Financial Services Ltd (IL&FS), Kumar said, "They have put many assets on sale. Once the value and the numbers are known, there will be a clearer picture about the recovery."

Kumar also batted for the bankruptcy code, and said, "Non performing asset (NPA) is on the decline now. Even today, I saw a news article where it said the reduction in NPA is more than even what the Reserve Bank of India (RBI) had anticipated. The situation is very much under control."

He added the bankruptcy code has enabled the banks to bring in more discipline in the lending markets.
08/03/19 Vidya/India Today