SBI likely to extend loan period for Air Deccan
30 May 2007
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Bangalore: Reports are now emerging that suggest that the State Bank of India, which is Air Deccan's main banker, may be all set to give the embattled low-cost-carrier, an extension on its Rs200 crore loan. The extension, it appears, may be awaiting a clearance from the Bank's board.
Air Deccan is India's pioneering low-cost-carrier, and also India's second largest airline.
Air Deccan had availed of a loan from the bank in two tranches of Rs100 crore each. The first such tranche, reports suggest, may be maturing on May 31. Industry sources now surmise that SBI will most likely extend the loan with Air Deccan providing its cash flows as collateral.
According to reports, the loan extension may come up before the Bank's board in a day or two.
