SBI prepared to support Tata’s bid for Air India

India’s largest public sector bank State Bank of India will support Tata group’s bid for soon to be scribing to Tata Sons debentures or funding the special  purpose vehicle set up by Tata sons for the acquisition.

Bankers stated that credit rating of Tata groups rating is AAA signifying high safety and  a combination of Air India with its existing Air Line business would make it formidable player leading to duopoly market with IndiGo. It would open many business opportunity imcluding the retail segment. At present banks in India do not provide direct funding loans to corporate acquisitions. Tata group had given a financial bid to Air India which have made a loss of Rs 9,779 crore for fiscal ending March 2021 on revenues of Rs 12,139 crore is expected to privatise by the end of current calendar year and fate of financial bids will be known in three weeks.

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