Process of recovery of dues from Kingfisher on, SBI chief says.
Arundhati Bhattacharya, Chairman and Managing Director (CMD) of State Bank of India (SBI), on April 26, 2014 said the process of recovery of dues from Vijay Mallya-promoted Kingfisher Airlines is going on, “but there are legal challenges.”
“Kingfisher is currently a non-operative account and we don’t want to discuss individual accounts. Whatever are the steps necessary for recovery, they are going on, but there are some steps that will take time because there is a legal system to negotiate with, and obviously there are legal challenges. So we are looking at that,” she told reporters.
State Bank of India leads a 17-member consortium of lenders that is trying to recover dues running into over Rs 7,500 crore in principal alone from Kingfisher Airlines. SBI has the maximum exposure of Rs 1,600 crore to the airline, which has been grounded since October 2012.
So far SBI has recovered around Rs 350 to Rs 400 crore from the grounded airline. Asked about recovering the balance, she said, “I have fully provided from our profits.”
SBI Capital Markets Ltd has been tasked by the consortium of lenders to recover their dues.