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Shares of Kingfisher Airlines today plunged over 11 per cent in morning trade after State Bank of India, the company’s largest creditor, declared its exposure to the air carrier a non-performing asset.
After a weak start, the shares fell further to an early low of Rs 18.15, down 11.24 per cent over the previous close, on the NSE. On the BSE, the stock fell 10.75 per cent to an early low of Rs 18.25.
“Kingfisher is a NPA (non-performing asset) for us. They are in default,” SBI Chairman, Mr Pratip Chaudhuri, said yesterday.
SBI, the leader of the consortium of banks which have lent funds to Kingfisher Airlines, has an exposure of Rs 1,457.78 crore to the firm. The private carrier is in a financial mess and struggling to service its loans, which have run up to over Rs 6,000 crore.
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