Corporation Bank hopeful of recovering loans from Kingfisher

Corporation Bank has said that its loan exposure to the financially troubled Kingfisher Airline was about Rs 160 crore and it is hopeful of the recovery.

The carrier had borrowed Rs 160 crore from the bank, Corporation Bank Executive Director A L Daultani told PTI when asked about its loan exposure to the beleaguered airline.

He said he is hopeful of positive signs by virtue of efforts taken by banks consortium for recovery of the debt. Kingfisher has a debt pile of over Rs 7,000 crore and mounting losses, with lenders trying to work out a solution to recover their loans.

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Daultani was here recently to unveil an exclusive centre for disbursement of loans to SME sector. He said the bank will launch new products by re- engineering processes and procedures adopted in savings bank and current account systems by next month-end.

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“There will be lot of variants to account holders of savings bank, whoever operates with a nil minimum balance.They will be offered sops and concessions on process of banking services. “This product pending clearances from relevant agencies like RBI will be launched before the end of this year,” Daultani said.

The bank is also working on a host of concessions and liberal processing systems like free remittances, low tariff for issuance of cheque books, payment through RTGS, concession on issuance of Draft and Pay Orders, subject to the customer assuring a minimum balance of Rs 10 lakh in his/her account, he added.

This new product will be unveiled by January next, subject to approval from Finance Ministry/RBI. The bank is on track to attain 18 per cent growth this year, as against Rs 2.32 lakh crore aggregate business clocked last year. This year, it is expecting to surpass Rs 2.5 lakh crore, he said.

Daultani said 300 new branches on Pan India model was planned for the current financial year. “Already 100 branches have been unveiled taking the total branches to over 1,600. Balance 200 branches will be inaugurated before end of this fiscal.” The bank has 11 million customers.

PTI