The Banks are not able to come to a decision on providing further help for the Kingfisher Airlines ridden with debts, as it is still to provide them with their business plans. The five main bank committee belonging to the group of 13 banks, that lend money to the airline company met in Mumbai to discuss on the fund requirements for Kingfisher, but it resulted in an informal event.

An official belonging to one of the lender bank said that Kingfisher has sent to them, an official request for fresh limits and letter of credit openings with the aircraft lessors. The official further added except if they get the other required financial particulars, it is not feasible for them to come to a decision on further funding requirements.

State Bank of India, IDBI Bank, Bank of Baroda, ICICI Bank, and Punjab National Bank are the five major forming part of the 13 bank consortium which has an Rs 7,000 crore overall exposures out of with Rs 4000 crores is in the form of loans. In the last fiscal, the process of restructuring of debts were done in which the more the more than Rs 1,300 crore bank debts were changed into equity and now a 23.4 percent stake is being owned by the banks in the company .

The bank official said that even if the cost on interest is reduced, it still impossible for the airline to become profitable. However, if fresh equity is brought in by Kingfisher, the banks may reorganize the prevailing loans into equity, postpone term loans or alter term loans into credit letters.

Even though the banks very well know the pressure occurring in the aviation industry, the official said that they want to make sure that the debt is sustainable for the business. The official made a point that the bank loans cannot be funded for the cash losses, he added that to reduce the debts, equity should be brought in.