Kingfisher Airlines lenders going all out to recover dues: SBI
06 May 2013
The State Bank of India today said it had recovered some of its outstanding loans from the flopped Kingfisher Airlines and is trying its best to recover the remainder.
Pratip Chaudhuri, chairman of the country's largest lender, told newspersons in New Delhi that the consortium of lending banks to the grounded airliner has recovered Rs800-1,000 crore and is making all efforts to recover the rest.
''KFA recoveries are going on. We have substantial amount of recoveries. Total recoveries for banks are more than Rs800-1,000 crore,'' Chaudhuri said at a function in New Delhi.
The KFA lenders' consortium of 17 state-owned banks, led by SBI, has outstanding dues of over Rs7,000 crore from the airline.
Of this, its possession of shares in Kingfisher promoter Vijay Mallya's United Spirits, part of the liquor empire that enabled him to promote an airline, as collateral, which should realise Rs500 crore. The lenders also have the Kingfisher brand as a security.
Additionally, the consortium has a residual right over the securities held by SREI Infrastructure Finance amounting to Rs500 crore. This was bought by SREI from ICICI Bank in April last year.
SBI has the maximum exposure to the failed airline - over Rs1,600 crore; followed by Punjab National Bank (Rs800 crore), Industrial Development Bank of India (Rs800 crore); Bank of India (Rs650 crore); and Bank of Baroda (Rs550 crore).
''We are going after all assets. The company's shareholdings, real estate, Mallya's personal assets - all are targeted,'' Chaudhury said.