BOB made provision of Rs 500 crore against GoFirst loans

17 May 2023 , 12:28 PM

On Tuesday, Sanjiv Chadha, Managing Director and Chief Executive Officer (MD and CEO) of Bank of Baroda said that the company has made a provision of Rs 500 crore to cover any potential hit if loans to Go Airlines (India) Ltd turn sour.

“We have Rs 1,000 crore collateral on tangible securities and Rs 500 crore as provision in this quarter,” Chadha said after the state-owned lender announced its fourth-quarter results.

 As per reports, the bank has lent Rs 1430 crore to the airline company.

In the Go First bankruptcy filing, the company lists Central Bank of India Ltd, Bank of Baroda Ltd, IDBI Bank Ltd and Deutsche Bank among its financial creditors, which are owed Rs 6,521 crore ($797.38 million) in total. While the private lender, Axis Bank in its regulatory filing said that it has no exposure in the Go First airlines.

As per reports, the airline has a total liability and dues to banks, other creditors, vendors etc. – of about Rs 11,463 crore.