India’s largest public sector lender, State Bank of India, is not looking to lend to the troubled Spicejet, said chairman Arundhati Bhattacharya on Friday.
“We are not looking for any exposure to SpiceJet,” Bhattacharya told reporters on the sidelines of SBI’s launch of technical learning centre.
SpiceJet had cancelled several flights till Thursday after it was barred from advance booking beyond a month by the Directorate General of Civil Aviation (DGCA) early this month.
The civil aviation regulator had said the budget airline needs to submit a plan to pay off Rs 1,600 crore of dues and stay afloat. The airline is in need of Rs 600 crore fresh loan and reports indicate that Ajay Singh, the co-founder of SpiceJet, is looking to invest in the company.
Meanwhile, commenting on loan growth, Bhattacharya said although the bank is seeing a pick up in the corporate loan offtake, the growth in the portfolio so far in the current financial year is muted.
On the recent one-time settlement (OTS) scheme for borrowers hit by the Goa mining ban, she said the bank is willing to help the mining sector through financial assistance.
“It is necessary to revive the mining sector in the country,” she said.
State Bank of India had recently approved the one-time settlement (OTS) scheme for its borrowers from the beleaguered mining industry in Goa. This is expected to pave way for other financial institutions to settle the long-pending bad debt of those who are in trouble owing to the stoppage of mining in Goa.
The SBI chief is also supportive of the implementation of the GST. “It should be passed and I hope it gets passed as lot of unproductive work is being done currently. Through GST, losses of taxes will reduce.”
In a step towards greater penetration of mobile and internet banking, SBI on Friday launched 385 technology learning centres through which it will make its customers more tech savvy and push them to use alternative channels for transacting.
By March 2015, the bank also plans to install 4,000 additional cash-recyclers which serve the twin purpose of cash deposit and withdrawal. The bank is also going to install 2, 500 Barcode-based passbook printing kiosks ‘Swayam’ in branches with high passbook printing frequency.
Arundhatispeak:
We are not looking for any exposure to Spicejet
GST should be passed and I hope it gets passed as a lot of unproductive work is being done currently. Through GST, losses of taxes will reduce
It is necessary to revive the mining sector in the country
Corp loan offtake has picked up, but growth in the portfolio so far in FY15 is muted