Apropos your edit “A bird that won’t fly” (October 22), the suspension of Kingfisher Airlines’ flying permit is the straw that broke the camel’s back. The airline’s future now stands uncertain. Loans granted by banks are as good as lost. Even if the banks go ahead with the recovery, the supporting assets are abysmal. Can we dismiss the whole issue as a lending hazard? Definitely not. It is clear that the banks did not properly evaluate the business proposal submitted by the airline. The question here is of accountability. With public sector banks’ funds at stake, the accountability assumes further significance. No doubt banks are good at writing-off of the amount. But why has the Reserve Bank become totally passive l’affaire Kingfisher? Has the whole issue been politicised considering the high profile of promoter Vijay Mallya?
K V Rao Bangalore
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