Tuesday, May 07, 2013

Kingfisher loans hurt banks less

New Delhi: The State Bank of India (SBI) today said the consortium of lenders to Kingfisher Airlines had recovered Rs 800 crore to Rs 1,000 crore from the grounded carrier and was making an effort to recover the remaining dues.
“Kingfisher Airlines recoveries are going on. We have substantial amount of recoveries. Total recoveries for banks are more than Rs 800 crore to Rs 1,000 crore,” SBI chairman Pratip Chaudhuri said here.
The consortium of 17 banks, led by the SBI, has an outstanding of over Rs 7,000 crore from the carrier. It has shares of listed entities such as United Spirits as collaterals, which should realise Rs 500 crore. That apart, lenders have the brand Kingfisher as 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.
The SBI has the maximum exposure of 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 at Rs 550 crore.
07/05/13 The Telegraph