Banks may resort to higher provisioning for Go First

LENDERS OF LOW-COST airline Go First went into a huddle on Wednesday after it declared that it is seeking a resolution under the National Company Law Tribunal (NCLT). Sources said lenders held internal meetings to assess the situation. A meeting of all the lenders is likely to happen soon, three senior bankers said.

- PIYUSH SHUKLA

However, most believe that the banks may resort to higher provisioning for the company's accounts in the April-June quarter. "While filing for resolution will bring all creditors together, the resolution must be accepted by the committee of creditors (CoC). I think banks will start providing for these loans from the June quarter," said a private sector banker.

Kaushik Khona, Go First CEO, on his part, told TV channels that bank loans are not only secured by the company assets, but lenders have collateral in the form of unencumbered land of more than 94 acres in a prime location in Mumbai.