SBI asks Kingfisher to raise fresh equity

SBI asks Kingfisher to raise fresh equity before debt recast-SBI, which has the largest exposure to crisis-ridden Kingfisher Airlines, has said it has asked the carrier to raise fresh equity to the tune of Rs 800-1,000 crore if banks are to consider a second restructuring of existing debt or extend fresh advances.

On whether the bank will consider making fresh advances to Kingfisher, SBI Managing Director Hemant Contractor said, "We have to be satisfied about the viability of the company. There is no point restructuring if the company's operations are not going to be viable.

"We have asked them to come up with some fresh funds if the banks are to at all consider their request for restructuring. We want to see more funds coming from the company itself..."

The amount that the carrier should raise is about Rs 800-1,000 crore, Contractor told reporters on the sidelines of the WEF-CII organised India Economic Summit in Mumbai on Monday.