SpiceJet loans 'high risk' for some lenders, say sources

Three Indian banks have internally categorised loans to SpiceJet as being at "high risk" though the airline has not defaulted, people with knowledge of the matter said, drawing a denial from the airline. IDFC First Bank, Yes Bank and Indian Bank are concerned about SpiceJet's cash flows and have held talks with the carrier seeking assurances as it has been behind on payments to some aircraft lessors, said the sources who declined to be named given the sensitivity of the matter. However SpiceJet called the Reuters report false and baseless. "None of our banks has put our account on high risk or alert," SpiceJet said. "The same has been confirmed to us by our lenders." IDFC said it had not categorised SpiceJet as a "red-flagged" account as it is a performing account. An IDFC spokesperson said the bank's net exposure to SpiceJet was small at 460m rupees ($5.8m), 200m rupees of which was covered under a government-sponsored programme and further supported by a "comfortable 2X security cover". The other two banks did not respond to Reuters' requests seeking comment on their SpiceJet loans. One of the sources said they were "very, very concerned about the SpiceJet account and have put it in high-risk category and are regularly monitoring it".<br/>