United Bank launches crackdown against Vijay Mallyas Kingfisher Airlines

Written by fe Bureau | Kolkata | Updated: May 30 2014, 17:47pm hrs
Vijay Mallya-Kingfisher Airlinescontinuing its war on bad loans, United Bank issues wilful defaulter notice to Vijay Mallya, other directors of Kingfisher Airlines.
Cracking down on Vijay Mallyas Kingfisher Airlines Ltd (KFA) for non-payment of more than Rs 300 crore outstanding dues, Kolkata-based United Bank of India on Thursday said it has issued wilful defaulter notice to the liquor baron along with other directors of the company.

We issued wilful defaulter notices to Mallya and other directors of Kingfisher Airlines yesterday (Wednesday). We are the first bank to do so, United Bank executive director Deepak Narang told FE.

Going tough on its NPA borrowers, the bank is also planning to file winding-up petitions against two-three big Kolkata-based defaulters for non-payment of dues to the tune of R 300-400 crore.

It has already filed a winding-up petition against city-based REI Agro for non-payment of R224 crore in dues. The company is engaged in agro-based and other ancillary businesses.

Continuing its war on bad loans, United Bank is aiming to trim its gross non-performing assets (NPAs) to R5,500 crore by this fiscal-end, bringing it down by more than R1,600 crore through recovery and upgradation.

The troubled city-based banks gross NPAs stood as high as R7,118 crore or 10.47% of total advances at the end of the last financial year, although it made an unprecedented reduction in its gross NPAs of R1,427 crore during the fourth quarter of 2013-14.

Significantly, its gross NPAs to gross advances during the third quarter of

FY14 jumped to 10.82% to R8545.50 crore. We will continue to focus on cutting down our stressed assets. We are aiming to reduce the gross NPAs to R5,500 crore by the end of FY15, Narang had told FE.