Kingfisher lenders say recovery last option

October 21, 2012 16:49

Lenders to Kingfisher Airlines, whose combined exposure of nearly Rs 7,500 crore is at risk, have said they will go in for recovery measures only as the last resort and expressed hope that its promoters will be able to find an investor and resume operations.

Aviation regulator DGCA had on Saturday suspended the licence of the financially-troubled airline.

"At best, we will be able to recover just 10-15 per cent of our overall exposure if we were to monetise the pledged properties. So initiation of recovery measures will be our last recourse," a senior official of a city-based public sector lender told PTI.

This bank has around Rs 500 crore stressed exposure.

When contacted, SBI, which leads the consortium of 17 banks and has an exposure of over Rs 1,500 crore, said the airline was grounded for the past three weeks anyway and thus there is nothing new with the DGCA ordering suspension of its licence.

"Though there is nothing new following the DGCA suspension, we are concerned as we have no control on these developments," S Vishwanathan, managing director, mid-corporates at SBI said.

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