RBI asks banks to restructure aviation loans

MUMBAI: The Reserve Bank has asked banks to work out a special concessional package for the crisis-ridden aviation sector, in response to which the lenders said they will look into the problems on a case-to-case basis.

"The RBI has allowed in the case of aviation sector a special concession. Banking industry could on a case-by-case basis, subject to the guidelines and parameters given by RBI, look to see how this industry could be helped by a rescheduling, restructuring...," State Bank of India Chairman O P Bhatt told reporters on the sidelines of a banking conference here.

The RBI had sent a communication to the banks with regard to debt restructuring for airlines in the last week of August.

"We are sensitive to the requirement of the aviation sector and have communicated the same to the banks," RBI Deputy Governor Usha Thorat said.