Jet Airways crisis: Banks stare at Rs 1,000-crore urgent provisioning

Jet cancelled all flights on Wednesday as lenders did not extend critical interim funding

With Jet Airways suspending operations, lenders are looking at an immediate provisioning of about Rs 1,000 crore as the account is likely to be categorised as a non-performing asset (NPA). This comes despite the State Bank of India-led consortium of lenders continuing efforts to find a new buyer for the private airline.  

However, all the lenders are not on the same page but some of them believe that extending any finance to the beleaguered airline is akin to throwing good money for a bad investment, and opening prospects for a probe in future over the credit decision. “We can’t be wasting