'Aviation cos owe Rs 40,621 cr to banks'

Aviation companies owe Rs 40,621 crore to banks as on June 2012, of which the outstanding loan by country's largest lender SBI is over Rs 5,000 crore.

While the banks have disbursed Rs 47,056 crore to airline companies from 2009-10 to June 30, 2012, the total outstanding outstanding as on June 2012 stood at Rs 40,621 crore, Finance Minister P Chidambaram said in a written reply to the Lok Sabha.

He was giving details of exposure of major banks to airline companies for fiscal 2009-10, 2010-11, 2011-12 and 2012-13 (up to June 30).

As on June 2012, the outstanding loan by State Bank of India (SBI) stood at Rs 5,120.74 crore, for Punjab National bank (PNB) it was Rs 4,010 crore.

Besides, the loan due to Bank of India stood at Rs 4,614 crore, in case of Bank of Baroda it is Rs 4,133 crore, for Canara Bank Rs 2,327 crore is due, and the amount in case of IDBI Bank is Rs 2,550 crore.

Of the private sector lenders, the airline companies owes Rs 770 crore to Yes Bank and Rs 23 crore to HDFC Bank.

Aviation companies have been witnessing stress in their finances which has also impacted their debt servicing, with some accounts turning non-performing assets (NPAs).

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