..........It remains to be seen if the other banks in the consortium, which has notable names like the State Bank of India, IDBI Bank and Punjab National Bank, will follow suit. Mr. Mallya has tried to shift the blame on to UBI for not following due process before declaring him a “wilful defaulter”, but there is no getting away from the basic fact that Kingfisher has not repaid its loans. It can only be hoped that the process of recovery of dues does not get bogged down in the legal system, given that Mr. Mallya has said he would go to court to contest UBI’s action. Banks are under pressure from the Reserve Bank of India to clean up their balance sheets and go after defaulters. Gross non-performing assets of the banking system at 4 per cent may not be alarming yet, but it is a cause for concern.....
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