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We're yet to hear from Kingfisher: SBI

Nov 24 2012, 17:44 IST
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Late last month, SBI set a November 30 deadline for Kingfisher to bring in fresh capital and produce a comprehensive revival plan.   (Reuters) Late last month, SBI set a November 30 deadline for Kingfisher to bring in fresh capital and produce a comprehensive revival plan. (Reuters)
SummarySBI has set Nov 30 deadline for Kingfisher to bring in fresh capital and produce a revival plan.

With barely a week left ahead of the November 30 deadline set by bankers to pump in fresh capital into the grounded Kingfisher Airlines, the lead lender State Bank of India today said it has not heard from the company so far.

"Kingfisher as a company has not given us any information or visibility on capital infusion," SBI chairman Pratip Chaudhuri told reporters on the sidelines of the annual two-day banking summit `Bancon 2012' here.

In an obvious reference to the United Spirit-Diageo deal earlier this month, he said there are reports relating to the group company, but that cannot be a basis for taking a view on the airline.

Late last month, SBI set a November 30 deadline for Kingfisher to bring in fresh capital and produce a comprehensive revival plan.

But airline chairman Vijay Mallya said later that he had no knowledge about any such deadline.

On the day United Spirits sold majority stake to the English liquor major Diageo for over Rs 11,100 crore, Mallya had hinted that the proceeds would not be diverted to the troubled airline, saying "both businesses will be dealt with separately".

The SBI chairman had earlier this week categorically ruled out fresh funds to the airline, which has not been servicing its Rs 7,000-crore working capital and long-term loans taken from 17 banks since January this year.

Banks have been demanding that Kingfisher management pump in at least USD 1 billion of fresh equity.

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