State Bank of India (SBI) on Monday said the consortium of lenders has recovered Rs800-1,000 crore and is making all efforts to recover the remaining dues from beleaguered Kingfisher Airlines.
“KFA recoveries are going on. We have substantial amount of recoveries. Total recoveries for banks more than Rs800-1000 crore,” SBI Chairman Pratip Chaudhuri said here.
The consortium of 17 banks, led by SBI, has an outstanding of over Rs7,000 crore from the carrier. It has shares of listed entities like United Spirits as collaterals which should realise Rs500 crore. That apart, lenders have the brand Kingfisher as a security.
Additionally, the consortium has a residual right over the securities held by Srei Infrastructure Finance, which comes to Rs500 crore. Srei bought this from ICICI Bank in April last year.
SBI has the maximum exposure, over Rs1,600 crore in the Vijay Mallya-led airline. It is followed by PNB (with Rs800 crore, IDBI at Rs800 crore, Bank of India at Rs650 crore and Bank of Baroda has Rs550 crore.
Chaudhuri said the consortium is making all efforts to recover remaining debt given to the airlines.
“We are making all efforts. We have treated this loan 100 per cent provided for. It does not mean that we are not going after assets,” he said.
“We are going after all assets. The companies shareholding, the companies real estate, the personal assets, all are targeted,” he added.
‘No immediate cut in lending rates’
SBI on Monday ruled out any immediate cut in lending rates even as the Reserve Bank had reduced policy rate by 0.25 per cent earlier this week.
“With repo rate (short-term lending rate of RBI) cut, we don’t get savings because our total repo borrowing is 20,000 crore,” SBI Chairman Pratip Chaudhuri said here.
“So if you (RBI) reduce rate by 25 basis points, the saving is 50 crore. Total advances is 5 lakh crore which comes to 1 bps,” he said. Had there been a cut in CRR, it would have would have provides room for cut, he said. The bank will continue with the same lending and deposit rate as of now, he added.