PNB In­dia de­clares United Brew­eries as wil­ful de­faulter

The Pak Banker - - COMPANIES/BOSS -

MUM­BAI: UB Group hold­ing com­pany United Brew­eries (Hold­ings) Ltd on Tues­day said that Pun­jab Na­tional Bank has de­clared the com­pany as a "will­ful de­faulter". "The com­pany is in con­sul­ta­tion with its le­gal coun­sels to chal­lenge the de­ci­sion by tak­ing ap­pro­pri­ate le­gal ac­tion that may be re­quired in this re­gard," United Brew­eries (Hold­ings), pro­moted by Vi­jay Mallya, said in its stock ex­change fil­ing. On 13 Novem­ber 2015, State Bank of In­dia (SBI) had de­clared United Brew­eries and Mallya as wil­ful de­fault­ers, though the com­pany had filed a writ pe­ti­tion against the same in the Delhi high court.

The will­ful de­faulter tag in con­nec­tion with the loan taken by the com­pany for the now grounded air­line King­fisher Air­lines Ltd. King­fisher Air­lines' op­er­at­ing li­cence was sus­pended in Oc­to­ber 2012 by the Di­rec­torate Gen­eral of Civil Avi­a­tion, fol­low­ing a strike by the air­line's em­ploy­ees. Over­all ex­po­sure of lenders is Rs.6,360 crore, which in­creases to about Rs.7,000 crore, adding un­ap­plied in­ter­est. SBI has the max­i­mum ex­po­sure to King­fisher in the con­sor­tium at Rs.1,600 crore, fol­lowed by Pun­jab Na­tional Bank (Rs.800 crore), IDBI Bank Ltd (Rs.800 crore), Bank of In­dia (Rs.650 crore), Bank of Bar­oda (Rs.550 crore), United Bank of In­dia (Rs.430 crore), Cen­tral Bank of In­dia (Rs.410 crore), UCO Bank (Rs.320 crore), Cor­po­ra­tion Bank (Rs.310 crore), State Bank of Mysore, an SBI as­so­ciate bank (Rs.150 crore), In­dian Over­seas Bank (Rs.140 crore), Fed­eral Bank Ltd (Rs.90 crore), Pun­jab and Sind Bank (Rs.60 crore) and Axis Bank Ltd (Rs.50 crore). Mean­while, SBICAP Trustee Co. Ltd, a wholly-owned sub­sidiary of in­vest­ment bank SBI Cap­i­tal Mar­kets Ltd (SBI Cap), has ini­ti­ated the process for sell­ing King­fisher House, the head­quar­ters of grounded air­line King­fisher Air­lines, as part of its ef­forts at re­cov­er­ing loans from its pro­moter Vi­jay Mallya. Pun­jab Na­tional Bank's third-quar­ter profit plunged over 93% as the state-run len­der had to set aside more money to cover bad loans and com­ply with the re­cent di­rec­tive of the Re­serve Bank of In­dia for mak­ing ad­e­quate pro­vi­sions for bad debts.

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