New Delhi: Stung by rising NPAs and lower profits, banks have initiated the process of searching for a buyer for the Kingfisher Airlines brand even as they start recovering some of their dues through sale of liquor baron Vijay Mallya’s assets.
SBI has valued the collateral of KFA at about R6,500 crore, excluding the brand, which falls short of their debt of around R7,000 crore. While some of the assets are being sold, SBI has started searching for a buyer for the Kingfisher brand, news agency agencies said quoting a PNB official.
It was not immediately ascertained how much the Kingfisher brand will fetch after the airline has been grounded.
Punjab National Bank is hopeful of recovering at least R60-70 crore from sale of Kingfisher Airlines’ assets, which, along with a faster loan growth and lower provisioning, may improve its bottomline in 2013-14, top officials said on Thursday.
10/05/13 Financial Express
