'No hopes to recover lent amount'

Published on May 24, 2015 16:11:17 PM
Business

Out of the Kingfisher Airlines’ 17 lenders, United Bank of India has emerged as the first one to have admitted of losing all hopes of recovering the money it has lent to the cash-strapped Kingfisher Airlines.

It is note-worthy that, United Bank has tagged the Ostentatious Vijay Mallya three other directors as a willful defaulter. Though, Mallya has legally challenged this tag.

Out of Rs 7,500 crore(excluding penal interest), lenders could only recover Rs 1000 crore in February 2013 by selling the group companies pledged shares.

Distressed CEO and MD of United Bank of India, P Srinivas expressed his agony saying nothing can happen now other than getting few more crore by selling Kingfisher House in Mumbai and other collaterals which is equal to the interest component.

Kingfisher Airlines owes Rs 6,500 crore now (after recovery of around Rs 1,000 crore recovery) to a 17-lender consortium led by SBI, which has lent Rs 1,600 crore to the chastised airline.

The list of remaining lenders is as follow:

Punjab National Bank (Rs 800 crore

IDBI Bank (Rs 800 crore)

Bank of India (Rs 650 crore)

Bank of Baroda (Rs 550 crore)

Central Bank of India (Rs 410 crore)

Besides, UCO Bank has to recover (Rs 320 crore)

Corporation Bank (Rs 310 crore)

State Bank of Mysore (Rs 150 crore)

Indian Overseas Bank (Rs 140 crore)

Federal Bank (Rs 90 crore)

Punjab & Sind Bank (Rs 60 crore) &

Axis Bank (Rs 50 crore)

The airline which stopped its operations since October 2012 never reported any profits however, accumulated humongous losses of Rs 16,023 crore. Its net worth fell to a negative Rs 12,919 crore at end of March 2013.