'KFA lenders to recover Rs 1,000 cr by March'

Lenders to Kingfisher Airlines Ltd, who have a collective exposure of Rs 7,000 crore to the grounded carrier, expect to recover up to Rs 1,000 crore by March end by selling part of the pledged shares and assets.

The plan is to sell the securities given as collaterals, Shyamal Acharya, deputy managing director (mid-corporates accounts) of State Bank of India, told reporters on Thursday. Lenders are working out legal issues for commencing recovery of dues from the Vijay Mallya-led airline.

A consortium of 17 banks, led by SBI, has an exposure of over Rs 7,000 crore to the carrier. The consortium has shares of listed group firms such as United Spirits as collaterals, which should realise Rs 500 crore. Additionally, the consortium has a residual right over the securities held by Srei Infrastructure Finance, which come 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 are corporate guarantees, personal guarantees and properties,” Acharya said, adding the total collaterals held by the banks come at Rs 6,500 crore.

The group companies, where they have Mallya as promoter director, may find it difficult to raise funds since Kingfisher has defaulted on payments, bankers said.

SBI has the maximum exposure, over Rs 1,600 crore, in the Mallya-led airline, followed by Punjab national Bank with Rs 800 crore and IDBI at Rs 800 crore. Bank of India’s dues are Rs 650 crore and Bank of Baroda’s Rs 550 crore.