India’s largest public lender State Bank of India will support Tata group’s bid for national carrier Air India. Market regulator Securities and Exchange Board of India, ahead of its implementation date, made changes to the circular that mandated a fifth of compensation to key employees of asset management companies in the form of mutual fund units.
India’s largest public sector bank State Bank of India (SBI) will support Tata group’s bid for soon-to-be-privatised Air India by subscribing to Tata Sons debentures or funding the special purpose vehicle (SPV) set up by Tata Sons for the acquisition.
Bankers said the credit rating of Tata group’s holding company is “AAA” signifying high safety and a combination of Air India with its existing airline businesses would make it a formidable player — leading to a duopoly market with IndiGo.
News Source: Pressreader
