All India Bank Employees Association (AIBEA) -Monday November 14, 2011 :
There are reports in the press and media that the Government may consider bail out package for Kingfisher Airlines and banks may be asked to extend further loans or further concessions. Already Banks have extended a total credit of more than Rs. 7000 crores and twice these loans have been restricted in order to avoid the loan being defined as Bad Loan/NPA. It is reported that few months ago, the shares of Kingfisher pledged with the Banks as a security for the loans have been purchased by the Banks at a total value of about Rs. 1400 crores.
It is further reported that these shares have been purchased by the Banks at a price of Rs. 65 per share when the actual market price at that time was only around Rs. 18 per share. There had been over-valuation to accommodate Kingfisher Airline. This is nothing but converting bad loan/debt as equity capital of the borrower. Everyone knows of the luxurious ways of life of the owner of Kingfisher Airlines Mr. Vijay Mallya. Hence any bail-out of Kingfisher Airline by the Banks or by the Government in any way would be only anti-national.
The right thing would be to nationalize and take over the Airlines by the Government.
From AIBEA, we have addressed a letter to the RBI Governor expressing our opposition to any further loan to the Airlines by any of the Banks.
AIBEA has also advised all its nominee Workman Directors on the Boards of the Banks to oppose any further bailout or credit facility to Kingfisher Airline. In fact the entire loan should be recalled by the Banks.
If the Banks proceed with such proposals to bailout the airlines, AIBEA would launch protest programmes across the country.
AWAIT THE CALL.
There are reports in the press and media that the Government may consider bail out package for Kingfisher Airlines and banks may be asked to extend further loans or further concessions. Already Banks have extended a total credit of more than Rs. 7000 crores and twice these loans have been restricted in order to avoid the loan being defined as Bad Loan/NPA. It is reported that few months ago, the shares of Kingfisher pledged with the Banks as a security for the loans have been purchased by the Banks at a total value of about Rs. 1400 crores.
From AIBEA, we have addressed a letter to the RBI Governor expressing our opposition to any further loan to the Airlines by any of the Banks.
AIBEA has also advised all its nominee Workman Directors on the Boards of the Banks to oppose any further bailout or credit facility to Kingfisher Airline. In fact the entire loan should be recalled by the Banks.
If the Banks proceed with such proposals to bailout the airlines, AIBEA would launch protest programmes across the country.
AWAIT THE CALL.