HomeLoansSpiceJet loans 'high risk' for some lenders, say sources

SpiceJet loans ‘high risk’ for some lenders, say sources

By Nupur Anand and Aditi Shah

MUMBAI (Reuters) -Three Indian banks have internally categorised loans to SpiceJet Ltd as being at “high risk” though the airline has not defaulted, people with knowledge of the matter said, drawing a denial from the airline.

IDFC First Bank, Yes Bank and Indian Bank are concerned about SpiceJet’s cash flows and have held talks with the carrier seeking assurances as it has been behind on payments to some aircraft lessors, said the sources who declined to be named given the sensitivity of the matter.

However SpiceJet called the Reuters report false and baseless.

“None of our banks has put our account on high risk or alert,” SpiceJet said in a statement. “The same has been confirmed to us by our lenders.”

IDFC said it had not categorised SpiceJet as a “red-flagged” account as it is a performing account.

An IDFC spokesperson said the bank’s net…

Read more at www.saltwire.com

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