1. Vijay Mallya loan case: Banks should focus on recovering dues, says Uday Kotak

Vijay Mallya loan case: Banks should focus on recovering dues, says Uday Kotak

Banks should focus on recovery rather than "going after borrowers", eminent banker Uday Kotak said today, a day after embattled tycoon Vijay Mallya remarked that arresting him will not help banks recover any money.

By: | Mumbai | Published: April 30, 2016 8:48 PM
Vijay mallya loan default case Vijay Mallya promoted companies, including the now defunct Kingfisher Airlines owe over Rs 9,000 crores to a consortium of 17 banks led by the SBI. (Reuters)

Banks should focus on recovery rather than “going after borrowers”, eminent banker Uday Kotak said today, a day after embattled tycoon Vijay Mallya remarked that arresting him will not help banks recover any money.

“In banking, crucial to focus on recovery of money lent as Arjuna’s eye. In going after borrowers are banks and system losing this key point?,” the CEO of Kotak Mahindra Bank said in a tweet.

Vijay Mallya promoted companies, including the now defunct Kingfisher Airlines owe over Rs 9,000 crores to a consortium of 17 banks led by the SBI.

The consortium alleged in the Supreme Court that the industrialist was not cooperating in the investigation of cases lodged against him and was averse to disclosing his foreign assets.

In an interview to Financial Times, Mallya said he was in a “forced exile” and disclosed no immediate plans to return to India where things are flying at him “fast and furious”.

Mallya, whose passport was revoked this month, said he wants a “reasonable” settlement with creditor banks for his defunct airline, but they “are not getting any money” by taking his passport or arresting him.

“I definitely would like to return to India. Right now, things are flying at me fast and furious. My passport has been revoked. I don’t know what the government is going to do next,” he had said.

The loans to companies promoted by Mallya were sanctioned in 2004 to 2007 and those turned into bad loans in 2009.

Mallya had left India on March 2, days before the Supreme Court heard a plea of clutch of state-owned banks seeking recovery of over Rs 9,000 crore from his group firms.

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  1. R
    Raghavan
    Apr 30, 2016 at 11:22 pm
    The statement is right, banks should try to get money instead trying to be correct
    Reply
    1. R
      Ramesh
      Apr 30, 2016 at 4:29 pm
      Now Dr.Mallya is trying to elicit support from rogue private bankers who got enriched themselves in a clandestine manner by colluding with promoters. If his Kotak Bank has extended loan then what stand that Mr. Uday Kotak shall take needs no explanation. He has no business to interfere with other PSB affairs. Let Kotak Bank withdraw all recovery cases against its borrowers and then preach.
      Reply
      1. P
        Parthi
        May 1, 2016 at 6:59 am
        If Mallya is arrested, then how will you recover 9k crs? Kingfisher is centralised to Mallya and no working functionality of now except support roles for him. But in case of Sahara, corporate is active
        Reply

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