India's largest lender the State Bank of India (SBI) sounded optimism over stake sales in Vijay Mallya owned United Breweries Holdings , United Spirits . According to Pratip Chaudhuri, chairman of the bank, it is a positive news even though the money is not flowing into the holding company directly. SBI is the lead lender for KFA, which defaulted loans of around Rs 7,000 crore.
Vijay Mallya owned USL on Friday announced the sale of 24.7% stake to the global spirit major Diageo, which would initially acquire the company for Rs 1,440 a share. The total consideration would be around Rs 5,725.4 crore.
"As far as KFA is concerned, we have 1,200 crore exposure and everything is fully provided for. So, there is no downside impact. The news is a positive. At present, the money is not flowing into the airline but into the group company. We have always mentioned that KFA needs capital. Where does the capital comes from, we are absolutely agnostic about it. It augurs well so long as the group has reserve money," the chairman said while addressing reporters for its second quarter results.
Earlier in December, 2011; the bank had already marked the KFA account as sub-standard asset, the first level of non-performing assets. The account will slip into doubtful asset category after a year that is in December, 2012.
When banks do not get repayment from a borrower for a full year, the loan account slips into doubtful level. This requires higher provisions against such loan, which will erode banks' profitability. As per RBI norms, banks have to provide at 30% for doubtful assets while it is at 15% for sub-standard assets.
The consortium of lenders in KFA included around 17 banks. Besides SBI, IDBI Bank has one of Rs 727 crore, Bank of India has Rs 575 crore and Bank of Baroda has Rs 537 crore. ICICI Bank had sold its entire KFA exposure of Rs 430 crore to Kolkata-based Srei Infrastructure Finance.
Learning experience
SBI boss drew a lesson the entire episode of KFA. Going forward, he will tread caution in extending loans to airline companies.
"Airline business itself is difficult. For running such business you need deep pocket. Globally too, many airline companies are merging with each other. We need to look at promoters like AirIndia who has deep pockets. It will be able to sea through such difficulties," he said.
saikat.das@network18online.com
Anda sedang membaca artikel tentang
USL stake sale in Diageo is positive for KFA: SBI
Dengan url
https://gayafashionshow.blogspot.com/2012/11/usl-stake-sale-in-diageo-is-positive_11.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
USL stake sale in Diageo is positive for KFA: SBI
namun jangan lupa untuk meletakkan link
USL stake sale in Diageo is positive for KFA: SBI
sebagai sumbernya
0 komentar:
Posting Komentar