PNB Recovers Rs 4,000-Crore Debt Of Air India

The government on Thursday transferred 100 per cent shares in Air India to the Tatas wholly owned subsidiary Talace Pvt Ltd along with management control

Civil Aviation Minister Jyotiraditya Scindia on Friday said that Air India had a running loss of Rs 85,000 crore over the past 14 years. Image: File Photo

New Delhi: Punjab National Bank (PNB) Managing Director (MD) and Chief Executive Officer (CEO) S S Mallikarjuna Rao has said that all the outstanding amount from Air India has been paid off.

The public sector bank has an exposure of Rs 4,000 crore towards Air India.

In his reply to ANI, PNB CEO has said that the amount has been recovered.

Air India's dues of about Rs 4000 crores have been recovered. All the outstanding amount from #AirIndia has been paid off: SS Mallikarjuna Rao, MD & CEO, Punjab National Bank

— ANI (@ANI) January 28, 2022

On Thursday, the central government formally handed over Air India to the Tata Group. The government transferred 100 per cent shares in Air India to the Tatas wholly owned subsidiary Talace Pvt Ltd along with management control.

Civil Aviation Minister Jyotiraditya Scindia on Friday said that Air India had a running loss of Rs 85,000 crore over the past 14 years. The national carrier was incurring losses of almost Rs 20 crore per day. Scindia termed the decision of nationalising the airline as a “wrong step” and said that the current disinvestment has set the 69-year old history in perspective.

Meanwhile, PNB CEO also said that currently the interest rates of banks are at their lowest. “I expect an increase of 25-30 basis points in interest rates from next month,” Rao told ANI.

Punjab National Bank on Thursday reported a twofold surge in standalone net profit at Rs 1,126 crore for the third quarter ended (Q3) in December.

The state-owned bank had earned a net profit of Rs 506.03 crore in the year-ago period.

However, total income during October-December 2021 declined to Rs 22,026.02 crore as against Rs 23,298.53 crore in the year-ago period, PNB said in a regulatory filing.