Kingfisher vs Jet: One chart tells a grim story about Vijay Mallya's loans


Bankers cannot escape blame for the bad-loan mess at Kingfisher Airlines. Why did they fund Vijay Mallya’s never financially solvent airline?

Kingfisher’s gross block (investment in fixed assets) was always a fraction of its total debt and the gap widened with each passing year (see chart). Thus, the banks never had the option to sell its assets and recover their dues in a default. Compare it to the amount of documentation and collateral that banks ask from individual borrowers.

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