SBI and Bank of Baroda provide Rs.14,000 crore loan to Air India

- Advertisement -

Tata group-owned Air India has secured funds worth Rs 14,000 crore from State Bank of India and Bank of Baroda through a mix of fresh loans and refinance of existing debt. The fundraising comprised Rs 12,500 crore to refinance loans and Rs 1,500 crore obtained through the pandemic-era Emergency Credit Line Guarantee Scheme (ECLGS).

The loans from SBI and BoB are benchmarked to State Bank of India’s six-month marginal cost of funds-based lending rate (MCLR) and are priced 50 basis points (bps) above it, the report said.

Use of Funds

  • Reportedly, the funds will support the airline’s upcoming expansion into both domestic and international markets with leased aircraft and new planes. The report said a part of the borrowing was also likely to be used to fund the payout for the voluntary retirement scheme (VRA), which is likely to cost over Rs 200 crore. The new round has been offered to all permanent general cadre officers who are at least 40 years and have completed at least five years of continuous service at Air India.
  • Air India has placed a firm order for 470 aircraft with Boeing and Airbus as part of the expansion plan.

Air India Financial Status

The airline had a total debt of Rs 15,317 crore in FY22, down from Rs 45,037 crore in FY21, according to disclosures in its consolidated financial statements for FY22. In January 2022, the Tata group took control of Air India, Air India Express and ground handling service provider AI SATS from the government after paying Rs 2,700 crore in cash and taking over Rs 15,300 crore of debt of the national carrier.

- Advertisement -

Share this article...

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More News...

Latest

Rs.7000 crore Bitcoin Ponzi Scam, ED seizes property of Raj Kundra

Rs.7000 crore Bitcoin Ponzi Scam, ED seizes property of Raj Kundra

Rs.26 lakh Bank Fraud in Mumbai

Rs.26 lakh Bank Fraud in Mumbai

Woman arrested in Brazil for using dead man to sign loan in Bank

Woman arrested in Brazil for using dead man to sign loan

Election Training Video, Know how to use EVM, VVPAT and conduct Elections

Election Training Video, Know how to use EVM, VVPAT and conduct Elections

17 million dollar Bank Fraud in US

17 million dollar Bank Fraud in US

Royal Bank of Scotland closes 18 Branches as customers are using more Online Banking

Royal Bank of Scotland closes 18 Branches as customers are using more Online Banking

Micro Observer Election Duties and Format PDF

Micro Observer Election Duties and Format PDF

Bank Cashier fight with customer over cash withdrawal in Mirzapur

Bank Cashier fight with customer over cash withdrawal in Mirzapur

12th BPS Update: Bank Unions held Discussions on remaining issues with IBA

12th BPS Update: Bank Unions held Discussions on remaining issues with IBA

Bank Employees beaten by Loan customer in Uttar Pradesh

Bank Employees beaten by Loan customer in Uttar Pradesh

Latest News