The lead banker to Kingfisher Airlines,State Bank of India,on Monday said it is taking all possible steps to recover loans to the grounded carrier.
We are blazing all guns and taking all steps to recover loans, said Pratip Chaudhuri,chairman,SBI,adding that a core group is identifying securities that can be disposed off or auctioned. Chaudhuri was in the capital to attend a meeting of finance minister P Chidambaram with heads of state-owned banks and financial institutions. At the meeting,Chidambaram asked PSU banks to go after wilful defaulters and affluent promoters of companies that cant pay loans.
Commenting on the directive,Chaudhuri said,We are taking all steps to recover our NPAs and make the situation better. In cases,where they cant pay the full amount at least part recovery should be made and the accounts on CDR (corporate debt restructuring) that process are being expedited.
A consortium of 17 banks,led by SBI,has outstanding loans of over Rs 7,000 crore to the debt ridden airlines. As collateral,it has shares of listed entities like United Spirits that would help fetch about Rs 500 crore. Additionally,the consortium also has the brand Kingfisher as a security. The banks also have residual right over the securities of about Rs 500 crore held by Srei Infrastructure Finance,which comes to Rs 500 crore.