Banks have finally started recovering dues from the beleaguered Kingfisher Airlines (KFA) and have as of now recovered around Rs 1000 crore. A consortium of 17 banks led by State Bank of India have lent around Rs 7000 crore to the carrier.
"KFA recoveries are going on. We have substantial amount of recoveries. Total recoveries for banks more than Rs 800-1000 crore," said chairman Pratip Chaudhuri.
The carrier has shares of listed entities like United Spirits as collaterals which should realise Rs 500 crore. That apart, lenders have the brand Kingfisher as a security.
Additionally, the consortium has a residual right over the securities held by Srei Infrastructure which comes to Rs 500 crore. Srei bought this from ICICI Bank last year.
SBI has the maximum exposure, over Rs 1,600 crore in the Vijay Mallya-led airline. It is followed by PNB (with Rs 800 crore, IDBI at Rs 800 crore, Bank of India at Rs 650 crore and Bank of Baroda has Rs 550 crore. Chaudhuri said the consortium is making all efforts to recover remaining debt given to the airlines.
"We are making all efforts. We have treated this loan 100 per cent provided for. It does not mean that we are not going after assets," he said further adding that banks are going after all assets. The company's shareholding along with real estate and personal assets, all are targeted.
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