The Central Bank of India told the exchanges on Wednesday that its total exposure to the embattled Go First airline, as of March 31, stands at Rs 1,987 crore.
Out of this, the outstanding exposure is Rs 1,305 crore and Rs 682 crore is sanctioned to the airline under the emergency line of credit guaranteed by the central government, the bank said in its clarification.
"Our exposure to the company [Go First] is only 0.91% of our total advances as of March 31, 2023 and interest charged up to April 30, 2023 is serviced by the company."
The state-run bank highlighted that it has made contingency provisions of more than Rs 1,500 crore in its books, as mentioned in the financial results for fiscal 2023.
No Exposure To Go First: Axis Bank
Earlier on Wednesday, private lender Axis Bank Ltd. mentioned in an exchange filing that it has no fund based or non-fund based outstanding from Go First.
In a surprise move, the Wadia Group-owned Go First had filed for voluntary insolvency proceedings before the National Company Law Tribunal on Tuesday, after announcing that it has cancelled flights for May 3 and 4 due to fund crunch.
The airline was served a show cause notice by the Directorate General of Civil Aviation over the cancelled flights, with a direction to respond within 24 hours.
Shares of Central Bank of India declined 5.13% on Wednesday to close at Rs 28.65 apiece, as against a 0.26% fall in the S&P BSE Sensex. The benchmark snapped its six-day rally to close at 61,193.30.
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