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State-run Corporation Bank will go along with the decision of the consortium of lenders to Kingfisher Airlines for recovering its outstanding debt from the ailing company.
“We want to go along with the consortium. We have served them (Kingfisher Airlines) notices much earlier than other banks and hearings have also been conducted,” said SR Bansal, chairman-cum-managing director, Corporation Bank, here when asked if the bank was contemplating to declare the grounded airline a wilful defaulter.
While United Bank of India was the first lender to declare KFA promoter Vijay Mallya and its three other directors wilful defaulters, UCO is contemplating to follow the UBI. State Bank of India has served the company a show cause notice seeking an explanation as to why it should not be named a wilful defaulter.
SBI leads a 17-member consortium of lenders that is trying to recover the dues running to 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 remained grounded from October 2012.
He declined to comment on the bank’s exposure to the airlines. "The day the amount will be recovered, I will declare it," he added.
As per media reports, Punjab National Bank and IDBI Bank each have an exposure of Rs 800 crore each to Kingfisher Airlines, Bank of India Rs 650 crore and Bank of Baroda Rs 550 crore.
Among the others, United Bank of India had lent Rs 430 crore, Central Bank of India (Rs 410 crore), Uco Bank (Rs 320 crore), Corporation Bank (Rs 310 crore), State Bank of Mysore (Rs 150 crore), Indian Overseas Bank (Rs 140 crore), Federal Bank (Rs 90 crore), Punjab & Sind Bank (Rs 60 crore) and Axis Bank (Rs 50 crore).
Lenders outside the consortium are Srei Infrastructure Finance (Rs 430 crore), Jammu & Kashmir Bank (Rs 80 crore) and Oriental Bank of Commerce (Rs 50 crore).
