BoI to infuse funds into Jet Airways only if other banks agree

MUMBAI Bank of India (BoI) is ready to provide emergency funding into Jet Airways but only if other lenders also are willing to put more funds in line with their exposure. Emergency funding

"Our stand is very clear that we are going to support (the resolution plan) unless we support there will be value destruction. We have to protect the value...we have also made it clear that all stake holders have to pitch in...we have made our mind clear," said D Mohapatra, CEO of Bank of India.

He did not give a direct reply when asked how much funding the debt laden airline is looking from banks. But was clear that BoI will only participate if others commit to put more money.

"In every game everybody should be there, isn't it?," he said while speaking to reporters on the sidelines of a conference.

The bank is still hopeful of "big" recoveries this quarter led by Rs 1,800 crore from ArcelorMittal's purchase of Essar Steel.

"We are expecting big recoveries. Our provision coverage ratio is 76.70% among the highest in the industry and some of the cases we have made 100% provisions and we are hopeful to write back directly to our profit " Mohapatra said.

The bank recently raised Rs 650 crore by selling shares to its employees. Mohapatra said BoI will tap all avenues to raise capital.

"Our focus is quality growth. Even in the most challenging times we grew at 10% to 12%. We have already received Rs 4000 crore in the second round and have mobilsed Rs 650 crore from employees. We are mobilising resources from all avenues," Mohapatra said. Last month the RBI freed the bank from its so called prompt corrective action norms allowing it to lend and open branches more freely.

The bank aims to raise Rs 400 to Rs 500 crore through sale of non core assets in the quarter ended March.