Mumbai: The State Bank of India-led consortium of 17 lenders is actively considering an option to declare the cash-strapped Kingfisher Airlines a wilful defaulter, said two senior bankers familiar with the development.
Kingfisher, led by Vijay Mallya, has been grounded for around 10 months now, and has not been able to revive the business or get any foreign investment. It has never posted a profit in its eight years of existence.
On the other hand, the lenders, who are desperate to recover as much as Rs 7,000 crore from the carrier, are woefully short of collateral. Of these, SBI has the maximum exposure with Rs 1,600 crore, followed by Punjab National Bank with Rs 800 crore, IDBI Bank Rs 800 crore, Bank of India Rs 650 crore and Bank of Baroda Rs 550 crore.
“In its last meeting, the consortium decided to examine whether Kingfisher Airlines can be declared as a wilful defaulter,” said a senior banker, who did not wish to be named.
04/09/13 Megha Mandavia/Daily News & Analysis
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Kingfisher, led by Vijay Mallya, has been grounded for around 10 months now, and has not been able to revive the business or get any foreign investment. It has never posted a profit in its eight years of existence.
On the other hand, the lenders, who are desperate to recover as much as Rs 7,000 crore from the carrier, are woefully short of collateral. Of these, SBI has the maximum exposure with Rs 1,600 crore, followed by Punjab National Bank with Rs 800 crore, IDBI Bank Rs 800 crore, Bank of India Rs 650 crore and Bank of Baroda Rs 550 crore.
“In its last meeting, the consortium decided to examine whether Kingfisher Airlines can be declared as a wilful defaulter,” said a senior banker, who did not wish to be named.
04/09/13 Megha Mandavia/Daily News & Analysis
