google.com, pub-6370463716499017, DIRECT, f08c47fec0942fa0 AlfaBloggers Best Bloggers Team Of Asia : Bankers look to sell Dr Vijay Mallya's Kingfisher Airlines Ltd brand as NPAs dip
Showing posts with label Bankers look to sell Dr Vijay Mallya's Kingfisher Airlines Ltd brand as NPAs dip. Show all posts
Showing posts with label Bankers look to sell Dr Vijay Mallya's Kingfisher Airlines Ltd brand as NPAs dip. Show all posts

Sunday 12 May 2013

Bankers look to sell Dr Vijay Mallya's Kingfisher Airlines Ltd brand as NPAs dip




Stung by rising NPAs and lower profits, banks have initiated the process of searching for a buyer for the Kingfisher Airlines brand even as they start recovering some of their dues through sale of liquor baron Vijay Mallya’s assets.
SBI has valued the collateral of KFA at about R6,500 crore, excluding the brand, which falls short of their debt of around R7,000 crore. While some of the assets are being sold, SBI has started searching for a buyer for the Kingfisher brand, news agency agencies said quoting a PNB official.

It was not immediately ascertained how much the Kingfisher brand will fetch after the airline has been grounded.



Punjab National Bank is hopeful of recovering at least R60-70 crore from sale of Kingfisher Airlines’ assets, which, along with a faster loan growth and lower provisioning, may improve its bottomline in 2013-14, top officials said on Thursday.

State Bank of India, which leads the consortium of lenders, has already initiated winding-up proceedings against the beleaguered airline and recovered R800-1,000 crore.

"(Banks) have enough collateral like his house and personal assets. SBI as a consortium leader is looking into it. We are hopeful of recovering R60-70 crore," PNB executive director Rakesh Sethi told reporters.

Of the 17 banks’ total exposure of about R7,000 crore in Kingfisher, SBI's exposure was at R1,600 crore followed by PNB and IDBI Bank at R800 crore each. Banks have written off the loans as the loss-making airline failed to repay in time.