KFA's debt woes: Couple of banks classify its loans as NPA

Source : CNBC-TV18 : Jan 05, 2012 at 21:17 

Kingfisher’s debt woes have taken a turn for the worse. Its key lender State Bank of India (SBI) has termed KFA's outstanding loans as non-performing asset . India's largest bank has given kingfisher 90 days to repay its dues.

Further Bank of Baroda (BoB) and Bank of India (BoI) have also termed KFA’s loans as NPAs, reports CNBC-TV18’s Gopika Gopakumar.

As of December 31, Kingfisher owes around Rs 150 crore as interest dues to SBI, which has now become an NPA. SBI will have to make a provisioning of around Rs 210 crore against this bad asset. SBI’s total exposure to Kingfisher now stands around Rs 1,400 crore.

Around six-seven big banks have classified Kingfisher as bad loans; two amongst these are Bank of India and Bank of Baroda.

Bankers say that Kingfisher has not been paying interest dues since September this year and it will have to make the payments in the next couple of days. It is learnt that Kingfisher has been making small amounts of payments to other smaller banks, but big banks have been affected because of not repaying the interest dues.