Stay away from Kingfisher: Rating Agencies
Things seem to be going from bad to worse for Kingfisher! Now even the financial institutions are afraid of working with the corporate and is treating the loans to it as Non-performing Assets.
Rating agencies on Wednesday warned against more exposure to debt-ridden Kingfisher Airlines, saying more debt may hit banks’ credit profiles and add to the burden of provisions.
State Bank of India, Bank of India, Bank of Baroda, IDBI Bank and Punjab National Bank have treated loans to the Vijay Mallya-controlled airline as non-performing assets (NPAs) in the third quarter, as it defaulted in repayments. The banks also had to make huge provisions, as well as reverse the part of interest income booked on this account. Source