No hope to recover money from Kingfisher: UBI

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Kolkata: According to a news agency,United Bank of India has become the first of the 17 lenders to publicly admit that it no longer expects to recover its dues from the beleaguered Kingfisher Airlines. The Kolkata-based lender was the first bank to attempt to get Vijay Mallya, the chairman of Kingfisher Airlines, tagged a wilful defaulter. Mallya and UB Group, however, challenged this tag in the court. The lenders have so far been able to recover only about Rs 1,000 crore from Kingfisher Airlines of their over Rs 7,500 crore exposure (excluding penal interest), since they recalled the loan in February 2013, by selling pledged shares in group companies.

The bank had extended Rs 400 crore in a consortium lending when Kingfisher Airlines was still flying. The airline was grounded in October 2012. The airline, owned by Vijay Mallya, owes Rs 6,500 crore now (after around Rs 1,000 crore recovery) to a 17-lender consortium led by State Bank of India (SBI), which has an exposure of Rs 1,600 crore to the grounded airline.

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