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Sunday, 2 November 2014

Banks Study Options To Recover Loans From Kingfisher Airlines

Prrivate sector banks, which have shied away from tagging Kingfisher Airlines chairman Vijay Mallya a "wilful defaulter" as some key public sector lenders have done, say that they are exploring "all options" to recover their loans.

At least two banks, the third largest private sector lender Axis Bank and the south-based Federal Bank, have said they have not classified KFA, Mallya and his senior officials as wilful defaulters.


Being declared a wilful defaulter means a person can be forced to stand down from any corporate posts and it may limit the fundraising prospects of his or her businesses.

"We have not classified them as wilful defaulters as yet," Axis Bank executive director in charge of corporate banking V. Srinivasan said.

The exposure, declared as bad loan long time back, is very small, he said, adding that the bank had an exposure of Rs 50 crore to the airlines that has not flown since October 2012.
Read news in full 27/10/14 Businessworld

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