According to bankers, the Kingfisher Airlines management told them that since the government announcement of allowing foreign carriers to buy stake in Indian airlines came only a few days ago, the firm would need more time to finalise a deal and repay some interest payment, long overdue. The airline, however, gave no timeframe to the banks on this issue, bankers said.
"Our immediately priority is that the airline make payments regularly," said a senior banker from a public sector bank. Banks have been reeling under huge provisioning burden as the loan has become an NPA.
Another senior public sector banker said Kingfisher executives conveyed that the UB Group was talking to private equity players for infusion. They made presentations on the operations and steps taken to improve financial parameters. They also reiterated demand for working capital support, the banker added.