Moneycontrol
Feb 18, 2013 03:38 PM IST | Source: CNBC-TV18

4-bank sub core group formed to recall KFA loan

Out of the five core group of banks formed of the consortium of 17 lenders to Kingfisher Airlines (KFA), a four bank sub-core group has been formed to facilitate the loan recall process for the cash strapped airline, reports CNBC-TV18’s Sunanda Jayaseelan.


Out of the five core group of banks formed from the consortium of 17 lenders to Kingfisher Airlines (KFA), a four bank sub-core group has been formed to facilitate the loan recall process for the cash strapped airline, reports CNBC-TV18’s Sunanda Jayaseelan.


This sub-committee consists of State Bank of India (SBI), Punjab National Bank (PNB), Industrial Development Bank of India (IDBI) and Bank of India (BoI). These four banks have the largest exposure in KFA. They have been mandated to get approval from their boards for recalling of loans.


According to a very highly placed source at SBI, a decision regarding this at the board level is expected within the next 10 days. Therefore, if SBI takes a decision in the next 10 days then one can expect other three banks also to start the process within the next 10 days.

The sources also added that they are highly confident about all banks getting board approval to start recalling the loans.

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