Kingfisher loan recovery positive for Indian banks: Moody’s

The development reflects the progress banks are making in recovering loan
 from non-performing borrowers, which is essential to trim losses. Photo: Mint

 Bloomberg :Live Mint : Mon, May 13 2013. 09 08 AM IST

17 lenders recovering Rs.1,000 crore from sale of Kingfisher shares kept with them as collateral is credit positive

Seventeen lenders recovering as much as Rs.1,000 crore from sale ofKingfisher Airlines Ltd shares kept with them as collateral is credit positive, Moody’s says in e-mail statement.

The development reflects the progress banks are making in recovering loan from non-performing borrowers, which is essential to trim losses, Moody’s e-mail statement said.

Lenders recovered the amount in over 45 days. The “swift” timing points to efficient legal process and reduces risk of costly procedure, the statement added.