KFA Lenders Recover Over Rs 1,000 cr

KFA Lenders Recover Over Rs 1,000 cr
Highlights

SBI chief Pratip Chaudhuri says banks are going after all assets including personal ones to recover loans...

SBI chief Pratip Chaudhuri says banks are going after all assets including personal ones to recover loans given to Kingfisher AirlinesA State Bank of India (SBI) on said the consortium of lenders to Kingfisher Airlines has recovered `800-1,000 crore, and is making all efforts to recover the remaining dues from the carrier. "KFA recoveries are going on. We have substantial amount of recoveries. Total recoveries for banks more than Rs 800-1000 crore," said Pratip Chaudhuri, Chairman, SBI.
kingfisher
The consortium of 17 banks, led by SBI, has an outstanding of over Rs 7,000 crore towards the carrier. It has shares of listed entities like United Spirits as collaterals, which should realise Rs 500 crore. That apart, lenders have the brand Kingfisher as a security. Additionally, the consortium has a residual right over the securities held by Srei Infrastructure Finance, which comes to Rs 500 crore. Srei bought this from ICICI Bank in April last year. SBI has the maximum exposure, over Rs. 1,600 crore in the Vijay Mallya-led airline. It is followed by Punjab National Bank with Rs 800 crore, IDBI at Rs 800 crore, Bank of India at Rs 650 crore and Bank of Baroda has Rs 550 crore. Chaudhuri said the consortium is making all efforts to recover the remaining debt given to the airlines. "We are making all efforts. We have treated this loan 100 per cent provided for. It does not mean that we are not going after assets," he said.A "We are going after all assets. The companies shareholding, the companies real estate, the personal assets, all are targeted," he added. Kinfisher Airlines, founded by flamboyant liquor baron Mallya in 2005, began floundering in 2009 when it reported second quarter loss of 418.77 crore. The airlines went for debt recast in November 2010 as its total loans ballooned to `6,000 crore. By March 31, 2011, its accumulated losses were more than 50 per cent of its net worth. The carrier was forced to declared partial lock-out October 2, 2012 following a strike by a section of its employees, DGCA suspended its permit about two weeks later. With chances for Kingfisher's revival turning bleak, bankers led by SBI started loan recovery process.
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