United Bank says efforts on to recover dues from Kingfisher

United Bank of India, on Monday, clarified that it was continuing its efforts to recover the dues from Vijay Mallya’s defunct Kingfisher Airlines.

The PSU lender was replying to the BSE (Bombay Stock Exchange), which had sought an explanation from the bank after reports quoting the bank’s MD and CEO said it lost hope on recovering dues from the Airlines.

“We will like to clarify that the bank has fully provided for in its accounts as per IRAC norms in respect of Kingfisher Airlines Ltd. It continues to fight the legal battles for recovery of dues through the consortia,” the bank said in a communiqué to BSE.

“The bank is individually fighting legal battles in connections with the declaration of the promoters and directors of the borrower company as well as the borrower company as ‘wilful defaulters’ and winding-up of the corporate guarantor. Through these measures, the bank feels that recovery is possible in the long run,” it added.

Considering the long-drawn out nature of these legal entanglements, claims raised by other statutory/regulatory authorities in view of the defaults committed by the borrower under other statutes and regulations and the amounts recovered so far, the bank felt that the possibility of any immediate major breakthrough in the account was difficult for the present.

According to reports, the bank had extended loans to the tune of Rs.400 crore in a consortium that lent to the airlines when it was operational.