Companies & Sectors
Lenders to recall loans to Kingfisher Airlines

The bankers, who in Mumbai on Tuesday, said they had given the airline sufficient time for a fresh equity injection, but there was no headway. Meanwhile, a top banking official said the value of the Kingfisher brand and the personal guarantee of Mr Mallya was more than the exposure

A consortium of banks, which has lent nearly Rs7,000 crore to Vijay Mallya-led Kingfisher Airlines, is considering recalling the loans. The lenders, led by State Bank of India (SBI), are reportedly meeting today to draw up an action plan.

 

The bankers, who met the airline’s management in Mumbai on Tuesday, said they had given the airline sufficient time for a fresh equity injection. But there was no headway. Meanwhile, SBI deputy managing director Shyamal Acharya said the value of the Kingfisher brand and the personal guarantee of Mr Mallya was more than the exposure.

 

On the other hand, the Kingfisher management said the airline would wait for an official communication from the banks before finalizing its move.

 

The debt-laden airline has been grounded since October 2012 after its licence was suspended by the Directorate General of Civil Aviation (DGCA) and a strike by its employees due to overdue salaries. The airline’s license expired on 31st December after the government refused to renew it.

 

A loan recall means that the borrower has to repay loans immediately. However, a top-level official of a large public sector bank said the recovery process would not be easy and would take time. Most banks have already classified KFA loans as non-performing assets and made provisions for the account.

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India’s exports up by 0.82% at $25.58 billion in January

During the April-January period of FY13, India’s overseas shipments declined by 4.86% to $239.6 billion. Imports during the period rose by 0.01% to $406.8 billion. Trade deficit during the 10-month period stood at $167.16 billion

India’s exports grew by 0.82% in January to $25.58 billion, after contracting for eight months in a row. Exports in January last year had stood at $25.37 billion.

 

Imports rose by 6.12% to $45.5 billion in the month under review, widening the trade deficit to $20 billion.

 

However, during the April-January period of FY13, the country’s overseas shipments declined by 4.86% to $239.6 billion. Imports during the period rose by 0.01% to $406.8 billion. Trade deficit during the 10-month period stood at $167.16 billion.

 

Oil imports in January grew by 6.91% to $15.89 billion from $14.87 billion in the corresponding period last year. Non-oil imports, too, increased by 5.71% during the month under review to $29.68 billion.

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