Kingfisher has been grounded since October 1 last after a

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Press Trust of India
Last Updated : Feb 12 2013 | 10:30 PM IST
labour unrest due to non-payment of salaries which have not been paid since last May. "The KFA management has been telling us that they need more time because they are working on the Diageo-USL deal which is a very complex one. But bankers feel that we have given enough time and it will be difficult for us to give any further time," Acharya said. The exposure of banks to the troubled carrier runs into Rs 6,360 crore. Unpaid interest and compounded interest take it to over Rs 7,500 crore. SBI, the leader of the consortium of lenders, has the maximum exposure with Rs 1,600 crore, followed by Punjab National Bank with Rs 800 crore, IDBI Bank Rs 800 crore, Bank of India Rs 650 crore and Bank of Baroda Rs 550 crore. "The consortium feels that we should consider recalling advances to the company. Each bank has to go back to the committees or internal authorities and take the necessary approvals," Acharya said. This is the consortium decision and each bank has to go back to the board and take the approval of the decision, he said, adding, "I think approvals for each of the bank, it will be at the board level because of the size of the advances, Decision should come in within the next 7-10 days." Banks were hopeful that some money would flow into the airline after Mallya sealed Rs 11,100 crore Diageo deal by selling majority stake in his liquor business United Spirits. Mallya had, however, said these are two different companies. The bankers were also banking on some equity infusion into the airline by a foreign player following the enabling regulatory environment, but the airline has not been able to find an investor so far.
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First Published: Feb 12 2013 | 10:30 PM IST

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