NEW DELHI: Even as lenders with over R7,000- 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 R1,410 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 R719 crore, R702 crore and R552 crore respectively to Kingfisher.
Courtesy:
8 Apr 2013
Hindustan Times (Mumbai)
HT Correspondent letters@hindustantimes.com
http://paper.hindustantimes.com/epaper/viewer.aspx
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 R1,410 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 R719 crore, R702 crore and R552 crore respectively to Kingfisher.
Courtesy:
8 Apr 2013
Hindustan Times (Mumbai)
HT Correspondent letters@hindustantimes.com
http://paper.hindustantimes.com/epaper/viewer.aspx
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