SBI ready for one-time settlement on Kingfisher Airlines loan; Mallya stumbles

Zee Media Bureau

Mumbai: State Bank of India is open to reaching one-time settlement on the payback of loan Kingfisher Airlines if Vijay Mallya repays the principal along with a reasonable amount of interest.

The Times of India, quoting sources, reported that the loan settlement has not progressed so far due to certain conditions put forward by the liquor baron.

The report added that the banking consortium is ready to settle the issue with Vijay Mallya without insisting on paying interest on interest.

In their auction notices, lenders have been showing the outstanding amount (including compounded interest) at Rs 6,963 crore as of February 2014. With penal interest, they have been claiming in excess of Rs 9,000 crore.

Mallya had left Indian in March this year fearing imprisonment in the loan default case.