KFA shares crash as DGCA raises concerns
The airline has also turned a non-performing asset for SBI that has earlier funded the airline.
Mumbai: Kingfisher Airlines fell more than 8 per cent after the country's aviation regulator, Directorate General of Civil Aviation, asked the carrier to provide a specific timeline for getting its grounded aircraft back in the air and for its recapitalization efforts.
Simultaneously, there are statements that the carrier has turned a non-performing asset (NPA) for State Bank of India (SBI) that has earlier funded the airline.
SBI chairman Pratip Chaudhuri has been reported saying that the bank has an exposure of Rs 1,458 crore to Kingfisher Airlines, which is in a poor financial position and struggling to service its loans.
It's not only banks that are complaining of the airline's inability to meet its loan obligations, oil companies and even the income-tax department are yet to receive their dues and service tax.