Federal Bank gets Rs 10 cr from Vijay Mallya's Kingfisher Airlines

Mar 25 2014, 18:47 IST
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Federal Bank expects more to come from the ongoing recovery process of the consortium. (AP) Federal Bank expects more to come from the ongoing recovery process of the consortium. (AP)
SummaryFederal's exposure in Vijay Mallya's Kingfisher Airlines is Rs 85 cr.

Federal Bank, a part of the consortium that had given loans to Vijay Mallya's Kingfisher Airlines Ltd, has recovered Rs 10 crore till date and is making efforts to get back the remaining dues from the beleaguered carrier.

"So far we have recovered Rs 10 crore from Kingfisher Airlines. We had an exposure of Rs 85 crore in the company," Federal Bank Managing Director Shyam Srinivasan said.

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The bank expects more to come from the ongoing recovery process of the consortium, he said.

The consortium of 17 banks, led by State Bank of India, has an outstanding debt of about Rs 7,000 crore from the now-grounded carrier.

SBI has the maximum exposure, over Rs 1,600 crore, in the Vijay Mallya-led airline. It is followed by Punjab National Bank with Rs 800 crore, IDBI at Rs 800 crore, Bank of India at Rs 650 crore and Bank of Baroda Rs 550 crore.

As part of the recovery process, banks in February last year decided to sell a portion of the collateral with them, including shares of group companies United Spirits Ltd and Mangalore Chemicals & Fertilizers Ltd, Mallya's Goa villa, Kingfisher House in Mumbai and the Kingfisher brand, which was valued at over Rs 4,000 crore at the time it was pledged.

Srinivasan said the bank is making all efforts to reduce its non-performing assets, or bad loans.

The bank's gross NPA came down to 2.83 per cent at the end of the third quarter from 3.85 per cent at the end of December 2012. During this period, its net NPA dropped to 0.86 per cent from 0.92 per cent.

"We expect the current trend of NPA reduction to continue in the current quarter," he said, adding that the bank has been focusing on quality assets to reduce fresh slippage.

MH370

The New Straits Times' darkened front page showed an aircraft above the words "Goodnight, MH370" -- a reference to the last message from the cockpit, "All right, good night", before the Malaysia Airlines jet lost contact on March 8.

Also read: Malaysia Airlines Flight MH370

MH370

A sympathy message is displayed at the webpage of the Malaysia Airlines website, in Shah Alam, outside Kuala Lumpur, Malaysia, Tuesday, March 25, 2014. It was the grim news that families of the missing Malaysian Airlines flight had dreaded for weeks, and on Monday they heard it from Malaysia’s prime minister: new analysis of satellite data indicates the missing plane crashed into a remote corner of the Indian Ocean. (AP)

MH370

A model plane of MH370 on display at well wish board for passengers aboard a missing Malaysia Airlines plane at Kuala Lumpur International Airport in Sepang, Malaysia, Tuesday, March 25, 2014. China demanded Tuesday that Malaysia turn over satellite data used to conclude that a Malaysia Airlines passenger jet was lost in the southern Indian Ocean with no survivors during a flight to Beijing.(AP)

MH370

A crewman of an RAAF AP-3C Orion aircraft looking out his observation window whilst searching for missing Malaysia Airways Flight MH370 Monday, March 24, 2014. The search is being conducted in an area 2,500km off the South West coast of Perth after the Malaysian Airways aircraft went missing on 8th March 2014 whilst on a flight between Kuala Lumpur and Beijing. (AP)

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