Kingfisher lenders unsure about quantum of recovery
Even as lenders with over Rs 7,000-cr exposure to the ailing Kingfisher Airlines have decided to sell pledged shares of USL and invoke his personal guarantee to recover chunks of debt, they remain unsure of the quantum of recovery. HT reports. Turbulent flightindia Updated: Apr 08, 2013 03:24 IST
Even as lenders with over Rs 7,000-crore exposure to the ailing Kingfisher Airlines have decided to sell pledged shares of United Spirits Ltd (USL) and invoke his personal guarantee to recover chunks of debt, they remain unsure of the quantum of recovery.
The recovery exercise is likely to fetch them an amount "which could be half of the total debt," said banking sources. Besides, it is also likely to be a time-consuming affair.
"Though banks have decided to go all out with the recovery exercise, we, in all likelihood would fall hugely short of the total amount and that is worrying for banks and what is worse is the fact that Mallya has no intention of repaying the loan amount," a senior executive of one of its private sector lenders told HT on the condition of anonymity.
The consortium of 15 banks led by the State Bank of India has recently embarked on the recovery process. SBI has an exposure of Rs 1,410 crore to the beleaguered airline, promoted by UB Group chief Vijay Mallya. IDBI Bank, Punjab National Bank (PNB) and Bank of India (BoI) have exposures to the tune of Rs 719 crore, Rs 702 crore and R552 crore respectively to Kingfisher.
ICICI Bank also an exposure of around Rs 430 crore.
First Published: Apr 07, 2013 23:48 IST