As per a PTI report, United Bank of India, the state-owned lender, has become the first of the 17 lenders to publicly admit that it no longer expects to recover its dues from the beleaguered Kingfisher Airlines Ltd (KFA).
Interestingly, the Kolkata-based lender was the first bank to attempt to get Vijay Mallya, Chairman of KFA, tagged as a wilful defaulter. Mallya and UB Group, however, challenged this tag in the court. The lenders have so far been able to recover just about Rs 1,000 crore from KFA out of their over Rs 7,500 crore exposure (excluding penal interest), since they recalled the loan in February 2013, by selling pledged shares in group companies.
"Now, nothing is happening on the Kingfisher account and we are not getting any amount. We may ultimately get a few more crores by selling that building (Kingfisher House in Mumbai) and other collaterals", P Srinivas, Managing Director and CEO, United Bank of India said.
26/05/15 TravelBizmonitor
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Interestingly, the Kolkata-based lender was the first bank to attempt to get Vijay Mallya, Chairman of KFA, tagged as a wilful defaulter. Mallya and UB Group, however, challenged this tag in the court. The lenders have so far been able to recover just about Rs 1,000 crore from KFA out of their over Rs 7,500 crore exposure (excluding penal interest), since they recalled the loan in February 2013, by selling pledged shares in group companies.
"Now, nothing is happening on the Kingfisher account and we are not getting any amount. We may ultimately get a few more crores by selling that building (Kingfisher House in Mumbai) and other collaterals", P Srinivas, Managing Director and CEO, United Bank of India said.
26/05/15 TravelBizmonitor
