Air India's secret

The continual troubles of the debt-ridden aviation sector is supposed to have made banks cautious about further lending to distressed airlines. Banks are overexposed to the sector, which has led to many questions about the lending patterns. During an international conference outside India, the chairman of a public sector bank was asked to explain why his bank was lending to the aviation sector knowing fully that it could become a bad loan one day. “I took an Air India flight to come to this place and I need to go back too. Do you want a situation where we don’t have any domestic flights in India and everyone travels by train?” he demanded in reply.