April 26, 2014
BANGALORE: State Bank of India chairperson Arundhati Bhattacharya on Saturday said the process of recovery of dues from Vijay Mallya-promoted Kingfisher Airlines is going on, "but there are legal challenges."
SBI working towards recovering dues running into over Rs 7,500 crore in principal alone from Kingfisher Airlines.
April 26, 2014
BANGALORE: State Bank of India chairperson Arundhati Bhattacharya on Saturday said the process of recovery of dues from Vijay Mallya-promoted Kingfisher Airlines is going on, "but there are legal challenges."
SBI working towards recovering dues running into over Rs 7,500 crore in principal alone from Kingfisher Airlines.
"Kingfisher is currently a non-operative account and we don't want to discuss individual accounts. Whatever are the steps necessary for recovery, they are going on, but there are some steps that will take time because there is a legal system to negotiate with, and obviously there are legal challenges. So we are looking at that," she told reporters here.
SBI leads a 17-member consortium of lenders that is trying to recover dues running into over Rs 7,500 crore in principal alone from Kingfisher Airlines. SBI has the maximum exposure of Rs 1,600 crore to the airline, which has been grounded since October 2012.
Asked how much the bank has recovered from the sale of Kingfisher Airlines' shares, she said, "Nothing very much. I think the recovery is in the range of Rs 350 to Rs 400 crore."
Asked about recovering the balance, she said, "I have fully provided from our profits."
SBI Capital Markets Ltd has been tasked by the consortium of lenders to recover their dues.
Punjab National Bank and IDBI Bank each have an exposure of Rs 800 crore each to Kingfisher, Bank of India Rs 650 crore and Bank of Baroda Rs 550 crore.
Among the others, United Bank of India has Rs 430 crore, Central Bank of India (Rs 410 crore), Uco Bank (Rs 320 crore), Corporation Bank (Rs 310 crore), State Bank of Mysore, (Rs 150 crore), Indian Overseas Bank (Rs 140 crore), Federal Bank (Rs 90 crore), Punjab & Sind Bank (Rs 60 crore) and Axis Bank (Rs 50 crore).
Lenders outside the consortium are Srei Infrastructure Finance (Rs 430 crore), Jammu & Kashmir Bank (Rs 80 crore) and Oriental Bank of Commerce (Rs 50 crore).
Courtesy: PTI
