Kingfisher Airlines' largest creditor SBI said on Thursday the company continues to be a bad asset and the carrier will have to come with an equity infusion plan, even as the Vijay Mallya-promoted airline is knocking at the government's door for more time to pay loans.
"Kingfisher continues to be an NPA (non-performing asset). The company will have to infuse more equity," said SBI Chairman Pratip Chaudhuri.
"Kingfisher loan has become NPA for the last one month or so. I don't think Kingfisher loan has reached that stage that loan would have to be sold," he said, adding, no fresh sanctions are being done to the airline.
On equity infusion from promoters in Kingfisher, he said, "The company will have to come with a proposal. They
have not come up with any proposal."
Airlines, including Kingfisher, have to get equity, he said, adding, "whosoever brings in equity or capital or interest free capital is a welcome. We don't have any particular preference or negative list."
SBI, the leader of the consortium of banks that have lent funds to Kingfisher Airlines, has an exposure of Rs 1,457.78 crore (Rs 14.577 billion) to the struggling firm.
SBI's exposure is the highest among any of the lenders to the airline, followed by IDBI Bank (Rs 727.63 crore {Rs 7.276 billion}), Punjab National Bank (Rs 710.33 crore {Rs 7.103 billion}), Bank of India (Rs 575.27 crore {Rs 5.752 billion}) and Bank of Baroda (Rs 537.51 crore {Rs 5.375 billion}).
The carrier is in a financial mess and struggling to service its loans, which have run up to over Rs 6,000 crore (Rs 60 billion).