Mon, 18 Mar 2013 18:30:00 GMT | By PTI

SBI taking steps to recover money from Kingfisher: Chairman

The lead banker to Kingfisher Airlines says it is taking all steps to recover the loan provided to the grounded carrier.


SBI taking steps to recover money from Kingfisher: Chairman (© Reuters)

New Delhi: The lead banker to Kingfisher Airlines, SBI on Monday said it is taking all steps to recover the loan provided to the grounded carrier.

"We are blazing all guns and taking all steps to recovery (of Kingfisher loans)," SBI Chairman Pratip Chaudhuri said here after the meeting of the Finance Minister with the heads of PSU banks and financial institutions. "There is a core group. They are assessing what are securities what can be disposed of quickly then they are put on auction... That is how it goes," he said.

Earlier in the day, Finance Minister P Chidambaram asked the banks to take firm steps to recover loans saying that the country cannot afford to have "affluent promoters and sick companies".

"We cannot have an affluent promoter and a sick company. Promoters must bring in money," Chidambaram had said. The consortium of 17 banks, led by SBI, has an outstanding of over Rs 7,000 crore from the carrier but has shares of listed entities like United Spirits as collaterals which should realise Rs 500 crore. That apart, they have the brand Kingfisher as a security.

Additionally, the consortium has a residual right over the securities held by Srei Infrastructure Finance, which comes to Rs 500 crore. Srei bought this from ICICI Bank in April last year. SBI has the maximum exposure, over Rs 1,600 crore, in the Vijay Mallya-led airline, followed by PNB (Rs 800 crore), IDBI (Rs 800 crore), Bank of India (Rs 650 crore) and Bank of Baroda (Rs 550 crore).

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