New Delhi - Banking majors Punjab National Bank and IndusInd Bank have won the bid to provide national passenger carrier Air India with over Rs 3,000 crore government guarantee backed "Short Term Loans" (STLs).
According to highly placed sources, the two banks will provide the STL to the airline.
"These two banks (PNB and IndusInd Bank) have won the bid to provide the STL. We are expecting the first fund trench by next week," a source said.
Earlier, Air India had called for financial bids from leading lenders by September 19.
"Air India is looking for Government Guarantee backed INR STLs totaling upto Rs 3,250 crore in the first phase to meet its urgent working capital requirements by September 25, 2017," the airline had said in its tender document which was issued on September 13.
"The tenure of the loan will be for a period of one year from the date of availing the STL. The amount... will be drawn in two or three tranches."
The airline that time had said that the guarantee is expected shortly, and will be valid for a period of one year or till the date of disinvestment.
The government-backed laons are expected to help the airline in settling dues of various vendors like oil companies and airport operators.