Banks go public to warn Kingfisher

Victoria
By Victoria April 17, 2013 10:29

Banks go public to warn Kingfisher

Banks will continue to sell pledged shares of Kingfisher airline and invoke all other securities till they get back the dues, Chairman Pratip Chaudhuri said today.

“We have given instructions to recover and enforce all the securities. Our intention is to sell everything…all means of recovery…nothing will escape. Till such time as we get back our dues in full, we will press our full recourse on all the securities that we possess,” he told reporters.

He added that the banks are not hurting any body’s interests as they are selling the USL shares above the open offer price of Rs 1,440 per share. “Open offer is at Rs 1,440, the current market price is higher, so we are not depressing the price,” he said.

He said the banks will first sell the shares, which will be followed by other liquid assets, then fixed assets and finally the personal assets. Chaudhuri, however, declined to answer on any specifics like the quantum of money recovered so far or the banks’ expectation of how much of the Rs 7,500 crore outstanding they can recover from the airline or if legal notices under the stringent SARFESI Act have been sent.

SBI has an exposure to Kingfisher of Rs 1,800 crore.

The other are: Punjab National Bank and IDBI Bank (Rs 800 crore each), BoI (Rs 650 crore), Bank of Baroda (Rs 550 crore), United Bank of India (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 and Sind Bank (Rs 60 crore) and Axis Bank Ltd (Rs 50 crore).

Victoria
By Victoria April 17, 2013 10:29
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