The biggest fallout of the unresolved and burgeoning NPA crisis, has been the destruction of national and household wealth, best symbolised by the over Rs. 3.5 lac crores of PSB recapitalisation by the government in the past 5 years. Irrespective of whether a sick company goes into liquidation, or is taken over, national wealth always gets destroyed. Such instances are aplenty. Take the case of Jet Airways, which at one time was India’s largest airline, which has now got a namesake buyer. Under the terms of takeover of Jet Airways, banks that have a total exposure of Rs. 11,345 cr. to the company, will receive a mere Rs. 1000 cr., that too over a five year period plus 10%, equity in an entity which is now worthless. The loss is closure of a national airline, loss of jobs and air planes being sold as scrap. In this episode of the Business Tit-Bits, our Business Editor Mr Akhilesh Bhargava shares his take.
#JetAirways #NPA #Goyal
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