I wrote about public sector banks shoveling money to the telecom operators in this post: The 3G Scam?. Now we read this: Kingfisher Airlines is NPA for us, says SBI chief.
New Delhi, Jan. 5:
The State Bank of India said Mr Vijay Mallya-promoted Kingfisher Airlines has turned a non-performing asset (NPA).
“Kingfisher is an NPA for us. They are in default,” Mr Pratip Chaudhuri, SBI Chairman, told reporters here on Thursday.
SBI is the lead bank in the consortium that has funded this private airline. The country's largest commercial bank has an exposure of Rs 1,458 crore to Kingfisher Airlines, which is in a weak financial position and struggling to service its loans.
The other banks with significant exposure to Kingfisher Airlines are IDBI Bank at Rs 727 crore, Punjab National Bank (Rs 710 crore), Bank of India (Rs 575 crore) and Bank of Baroda (Rs 537 crore).
Just add up those numbers: Rs 4000 crores has been given by our public sector banks to one private company which has blown it away. The biggest bank has already declared its loan as an NPA. Is this any different from a scam?
When will RBI make it mandatory for banks to reveal the full details of their NPAs and who owes them the money?