State Bank of India (SBI) chairman Rajnish Kumar on Thursday (March 7) said that a comprehensive resolution plan was being worked out with the lenders of Jet Airways, in a bid to put the ailing airline back on track.
Speaking at the Business Today – Money Today financial award function in Mumbai, Kumar said, “An overall comprehensive resolution plan is being worked out. There would be many elements, including conversion of debts of lenders into equity.”
The cash-strapped airline has reportedly pledged its fixed deposits (FDs) worth Rs 1,500 crore with SBI to borrow Rs 225 crore, according to media reports.
Talking about the cash-strapped Infrastructure Leasing and Financial Services Ltd (IL&FS), Kumar said, “They have put many assets on sale. Once the value and the numbers are known, there will be a clearer picture about the recovery.”
Kumar also batted for the bankruptcy code, and said, “Non performing asset (NPA) is on the decline now. Even today, I saw a news article where it said the reduction in NPA is more than even what the Reserve Bank of India (RBI) had anticipated. The situation is very much under control.”
He added the bankruptcy code has enabled the banks to bring in more discipline in the lending markets.
The SBI chairman also said he saw a bright future for the economy and one promising sector, according to him, was the service sector.
“The sector has been doing quite well and apart from that, there are certain sectors where we are seeing a lot of investment. Renewable energy is one. Road and port sector is another, and then there is aviation sector and then, city gas. There are certain sectors where there is a demand for the money. And then, there are couple of large sector projects again in the oil and gas sector as well as in the road sector where there is huge investment happening,” he said.