SBI may issue loan recall notice to Kingfisher soon
[This is another of those superfluous news which does not make any sense in the current context when the company is making restructuring efforts. This kind of effort comes into play when the other side is not willing to do any restructuring or not doing anything, to run the business again. 2ndly, calling of loans does not mean recovery of loans, because there would be long drawn legal process whereby, there could be possibilities of KFA Ltd winning the case too and create problems for the Banks. The consortium of Banks know the legal hurdles and hence this will be the last option they would probably try against a business tycoon like Dr.Vijay Mallya. Therefore, Hence, this is another of those junk news, which needs to be ignored or thrown into dust bins].
Speaking on the sideline, Krishna Kumar, MD, SBI said to CNBC-TV18, exclusively that lenders to Kingfisher have formed a sub-committee and are seeking legal opinion over recalling loans. Once recall notices are sent action will be taken on assets pledged.
Courtesy: Money Control