The troubles of cash-strapped Kingfisher Airlines worsened today with another lender classifying its loan to the Vijay Mallya-promoted company as “sub-standard”, a day after State Bank termed the airline as defaulter.
Bank of India has classified its Rs 575.27 crore loan to the Kingfisher as sub-standard, as the airline has defaulted on repayment. When contacted, the BoI Deputy General Manager (Large Corporates), Mr Bupinder Nayyar, who handles the Kingfisher account, refused to comment. However, a bank official, seeking anonymity, confirmed the development. Bank of India has overall exposure of Rs 4,000 crore to the airline industry.