A consortium of 17 banks are mulling recalling loans aggregating to the sum of Rs 7,000 crore from the private carrier, Kingfisher Airline. The lenders have initiated recovery proceedings after the country’s once second-biggest airline’s management, despite several rounds of meetings over the last year or so, failed to come up with any concrete plan of action for pumping in funds to revive the grounded airline. The full consortium of banks first met in December. However, still each bank will brief its board about the position and a final decision will be taken by the consortium in the next 7 to 10 days.
Of the Rs 7,000 crore that Kingfisher owes to banks, State Bank of India (SBI) has the largest exposure of Rs 1,400 crore. IDBI Bank, with around Rs 700 crore, Bank of India has Rs 575 crore and Bank of Baroda has Rs 530 crore, are other with sizable exposures.
Earlier, in an effort to renew its operating license before it expires at the end of the year, which ultimately proved futile, grounded carrier Kingfisher Airlines, filed a revival plan with the Directorate General of Civil Aviation (DGCA) on December 24, 2012, which failed to specify when the airline will restart operations.