State Bank of India, the largest lender to the debt-ridden Kingfisher Airlines, is expected to get board approval this week to issue a loan recall notice to the beleaguered airline.
“The process starts on Monday. We will most likely get board approval this week or latest by next week,” said Shyamal Acharya, deputy managing director at SBI.
SBI is the lead banker of the 17-lender consortium, which has an exposure of about Rs7,000 crore to liquor baron Vijay Mallya’s defaulting airline, as of December 31, 2012.
Within this, SBI has maximum exposure of over Rs1,600 crore.
Kingfisher, which has been grounded for more than four months, has been unable to obtain clearances to fly again and has also failed to get fresh capital from foreign airlines like Etihad Airways.