AIBEA opposed to Kingfisher bailout

The All-India Bank Employees Association (AIBEA) has opposed any bail out of Kingfisher Airlines by banks and demanded nationalisation of the airlines.

The AIBEA General-Secretary, Mr C. H. Venkatachalam, has in a release stated that the association would protest any move by banks to bail out the beleaguered airlines. Banks have already extended a total credit of over Rs 7,000 crore, and purchased shares at an overvalued price just to accommodate Kingfisher Airline and protect the defaulting company by converting bad loan/debt to equity.

The AIBEA has demanded a Parliamentary probe into the purchase of Kingfisher shares by banks and stressed the need for recalling the entire loan.