New Delhi: With Kingfisher Airlines facing huge turbulence, the State Bank of India (SBI) sources have confirmed to CNN-IBN that it has not given any additional loans to bailout the airline.
Top SBI sources told the CNN-IBN that the public sector banking giant does not want to send out wrong signal to its customers by providing life line to the airline. Bank unions have also protested this move to lend more to Kingfisher. Earlier there were reports that SBI had agreed to a 1650 crore financial package.
Kingfisher has borrowed over Rs 1400 crore from SBI. This was declared as a non-performing asset by the public sector bank in January. So this change of heart is questionable. Kingfisher already owes 7000 crore to several lenders including the SBI. The government is keeping a hands off policy when it comes to loans.
Civil Aviation Minister Ajit Singh said, "It's between the banks and the airline and it has nothing to do with us.
Meanwhile, Kingfisher submitted its new flight schedule to the DGCA. It has drastically cut its flights to less than half. They will now be operating just 28 of its aircraft from a fleet if 64. The regulator will also monitor these aircraft for safety on a daily basis till its finances and flights return to normal.