SBI does not expect to recover much from Kingfisher Airlines collateral sale
- Supreme Court strikes down Section 66A, says it violates right to speech
- Pakistan Day: PM greets, MoS VK Singh tweets #disgust
- DK Ravi's death: Govt calls in CBI, tells court he had a ‘relationship’ with batchmate
- Mufti Mohammad Sayeed says will take Army into confidence on AFSPA
- 1987 Hashimpura massacre: The photographs that stand witness
State Bank of India (SBI), the country's biggest lender, does not expect to recover much from the sale of collateral held by Kingfisher Airlines, its chairman told reporters on Thursday.
The consortium of Kingfisher's lenders, lead by SBI, expects to get at least 10 billion rupees ($186 million) through the sale of share and property pledged against loans taken by the grounded airline, said SBI Chairman Pratip Chaudhri.
The lender, earlier on Thursday, posted a 4 percent rise in quarterly net profit, its smallest increase in six quarters, as higher provisions for bad loans and slower loan demand in a sluggish economy hurt growth.
Banks to recover Rs 1,000cr from KFA in current quarter: SBI
(PTI) Kingfisher lenders hope to recover up to Rs 1,000 crore of their dues by monetising the securities in the March quarter itself, a senior official of SBI said today.
"That (selling the securities given as collaterals) is the plan," Shyamal Acharya, SBI Deputy Managing Director (Mid-Corporates Accounts), told reporters at the bank's December earnings press conference here.
He was asked specifically for a timeline to recover the dues from the grounded Bangalore-based airline.
Acharya explained that 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.
zdditionally, 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.
"These are low-hanging fruits which should give us Rs 1,000 crore. Balance is corporate guarantees, personal guarantees and properties," Acharya said, adding the total collaterals held by the banks comes at Rs 6,500 crore.