With Jet Airways suspending operations, lenders are looking at an immediate provisioning of about Rs 1,000 crore as the account is likely to be categorised as a non-performing asset (NPA). This comes despite the State Bank of India-led consortium of lenders continuing efforts to find a new buyer for the private airline.
However, all the lenders are not on the same page but some of them believe that extending any finance to the beleaguered airline is akin to throwing good money for a bad investment, and opening prospects for a probe in future over the credit decision. “We can’t be wasting our money in a case which has already gone bad,” said a senior executive of large public sector bank (PSB).
