Bank of Baroda has reserved Rs 500 crore as provisions in response to the advance given to Go First, an airline that recently filed for voluntary insolvency. Sanjiv Chadha, the Managing Director and CEO of Bank of Baroda disclosed that the bank holds collateral amounting to Rs 1,000 crore and has set aside an additional Rs 500 crore specifically for the loan. Initially, the bank extended a loan of Rs 1,430 crore to the financially distressed airline. Go First is also indebted to other lenders such as the Central Bank of India, Deutsche Bank, and IDBI Bank. The airline attributes the grounding of certain aircraft to problems with Pratt & Whitney engines and is actively pursuing compensation and replacement engines. As a consequence, Go First has experienced a decline in its market share, resulting in reduced revenue and delayed payments to its suppliers.
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