rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » ICICI files caveat with CLB on Kingfisher

ICICI files caveat with CLB on Kingfisher

April 05, 2012 11:45 IST

ICICIICICI Bank has filed a caveat with the Company Law Board and civil courts in some states, requesting for a hearing in case Kingfisher Airlines moves to liquidate assets that are pledged with the bank.

Banking industry sources said the move by the lender is pre-emptive to protect its interest.

ICICI Bank officials were not available for comments.

Kingfisher Airlines's stock jumped 11 per cent on Wednesday as the airline management stuck to its promise on paying salaries to its staff and employees called off the proposed strike.

This is the second consecutive rise for the troubled airline's stock. This was on top of the 10 per cent rise on Tuesday.

Since last year, the Kingfisher stock has fallen more than  70  per cent, as losses widened.

Last month, ICICI Bank, the country's largest private sector lender, asked the ailing airline to provide additional security for its Rs 600-crore (Rs 6-billion) loan after the airline's stock hit an all-time low.

"ICICI Bank as a matter of routine requested that security be topped up or that the loan amount be adjusted suitably,"' Kingfisher Airlines spokesperson had said denying reports of recall of the entire loan or notice for sale of securities.

While most of the lenders like State Bank of India and Punjab National Bank have identified loan to Kingfisher as non-performing asset. ICICI Bank is yet to mark it as an NPA.

BS Reporter in Mumbai
Source: