IDBI hopeful of recovering 80% of dues from Vijay Mallya's Kingfisher Airlines

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Brand Kingfisher had a notional value of over Rs 4,000 crore when pledged. Brand Kingfisher had a notional value of over Rs 4,000 crore when pledged.
SummaryIDBI is part of SBI-led core group, which is set up to recover over Rs 7,500 cr in principal alone.

IDBI Bank is hopeful of recovering up to 80% of its Rs 800 crore exposure to Kingfisher, even as the revival of the airline remains uncertain. “We are quite hopeful of recovering our dues from Kingfisher Airlines. We expect to recover 70-80% of our total loans to the airline,” a senior IDBI Bank official said.

The official said the bank’s total exposure stands at around Rs 800 crore. “We have recovered R70-80 crore by way of selling pledged shares,” the official added. IDBI is one of the five lenders in the SBI-led core group, which was set up early this year to recover over R7,500 crore in principal alone from the Vijay Mallya-promoted airline. The company has not been servicing these loans since January 2012.

While SBI has the maximum exposure with Rs 1,800 crore, other major lenders include PNB (Rs 800 crore), Bank of India (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 has an exposure of 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 & Sind Bank (Rs 60 crore) and Axis Bank (Rs 50 crore).

“There is enough collateral to cover the dues of all the lenders,” the official said, adding, “the Kingfisher brand still has a lot of value.” The declared collaterals include the Kingfisher House in Mumbai worth about Rs 150 crore, the Kingfisher Villa in Goa worth around Rs 90 crore and the brand Kingfisher, which had a notional value of over Rs 4,000 crore when pledged.

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