: Loans to Tata Group from SBI #FinanceIndia #StockMarketNEWS #Business Press Trust of India New Delhi A consortium of lenders led by the State Bank of India (SBI) will soon provide loans to the

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Loans to Tata Group from SBI #FinanceIndia #StockMarketNEWS #Business
Press Trust of India

New Delhi

A consortium of lenders led by the State Bank of India (SBI) will soon provide loans to the Tata Group for the operations of Air India (AI) as well as to retire the airline’s high cost borrowings.

After nearly 70 years, the Tata Group on Thursday regained ownership of Air India. With the completion of the deal, the group will own 100% stake in Air India, Air India Express and a 50% shareholding in AISATS.

Bankers said the SBI-led consortium has agreed to grant both term loans and working capital loans depending on the airline’s requirements. All large lenders, including Punjab National Bank, Bank of Baroda, and Union Bank of India are part of the consortium, they added.

“Many banks have agreed for refinancing of Air Inida debt to Tatas and the process has begun,??? one of the bankers said.

Existing lenders, who do not wish to participate in refinancing of debt to Tatas will get their money repaid through the refinanced amount, the banker said.

The Life Insurance Corporation of India (LIC) is among the entities that had given loans earlier to the loss-making Air India. Now, the IPO-bound LIC has decided not to extend more loans to the airline and will not participate in the current funding round led by the SBI, the bankers said.

The amount of loans likely to be extended by the consortium could not be immediately ascertained.
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