Corporation Bank treats Kingfisher loan as NPA in Q3

Mumbai: Corporation Bank has treated loans to ailing private carrier Kingfisher Airlines as a non-performing asset (NPA) in the third quarter ended December 2011.
Its loan exposure to Kingfisher was just a little more than Rs 155 crore. The bank made provision of around Rs 35 crore in the third quarter, said a senior bank official.
State Bank of India, Bank of India and Punjab National bank have also declared loans to the Vijay Mallya-promoted private airlines as an NPA, for the default on payment of dues.
The official said this airline is a commercially viable entity and come out of the crisis with the infusion of capital
Meanwhile, the bank has also said it would restructure its Rs 1,300-crore loan to Rajasthan State Power Distribution Company in the fourth quarter ended March 2012.
Its total exposure to state discoms is Rs 2,500 crore.
03/02/12 Business Standard

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Categories: Kingfisher Feb 2012