Mumbai: Ever heard the on-flight protocol for times of emergency landing? Perhaps bankers didn’t pay attention to it in the case of Jet Airways (India) Ltd.
While Jet Airways’ troubles began surfacing as early as June last year when the firm postponed its quarterly results announcement, bankers acknowledged the decay only after the airline defaulted on its loans for the first time in January. This is despite Reserve Bank of India (RBI) asking banks to red flag potential stress on their books.
Jet Airways’ nosedive took bankers by surprise somewhat and the scramble for a resolution plan began. But bankers dragged their feet on this and refused emergency funding on fears that they will come under the glare of investigative agencies later on.
