IDBI Bank, one of the PSU banks to provide funds to the beleaguered Kingfisher Airlines, is now hopeful about regaining 80% of the amount extended by it to the airline company, whose chances of revival are still very faint. According to IDBI Bank’s one of the senior officers, the bank is likely to recover 70 to 80% of the loan amount given by it to Kingfisher Airlines. He also added that the bank’s total exposure was around Rs.800 crore and the bank has been successful in recovering around Rs.70 to 80 crore.
The airlines company had borrowed funds from 17 banks in all and stopped repaying them since January 2012. For this purpose, a group was created this year, with SBI leading the group to recover just the principal amount of Rs.7500 crore from Kingfisher Airlines. IDBI Bank is one of the core members of this loan recovery group.