PSBs continue with 180-day framework to resolve Jet

NEW DELHI: Public sector banks, led by State Bank of India, have given themselves 180 days to resolve the Jet AirwaysNSE 1.62 % account even though the time limit has become irrelevant post Supreme Court order that quashed an earlier RBI circular on debt resolution.

Official sources in the Finance Ministry said that banks have informed the ministry that they were not ready to wait endlessly to restore health of the beleaguered airline and if attempts to bring in a strategic investor fails or is not completed by June 30, lenders may immediately initiate bankruptcy proceedings against Jet.

“All attempts are being made to see that Jet Airways does not fail and its operations are maintained albeit on a smaller scale. Banks, including SBINSE 0.06 % and Punjab National Bank (PNB) have already decided to provide interim funding support of Rs 1,500 crore to Jet,” a source in the finance ministry said.