Banks will have no one but themselves to blame if their too-late-in-the-day recovery drive against Vijay Mallya-owned Kingfisher Airlines comes a cropper.
Cutting flights, non-payment of dues, delay in disbursing salaries are the first obvious danger signs no lender can or should ignore. Yet all this happened. Was it a plain error of judgement? ET provides some answers:
Total debt on Kingfisher: Rs 7,723 crore
KFA losses: Rs 1,090 crore
Collateral on bank books: Rs 5,237 crore
Banks did not take adequate collateral to cover the loan.
They failed to sense trouble when KFA cut flights in October'11.
They did not take legal action even a year after co failed to pay dues in December'11.
In pic: File photo of Kingfisher Airlines plane flying from Mumbai Airport.
15/02/13 Economic Times
