Mumbai: Country’s largest lender SBI today said extradition of fugitive liquor baron Vijay Mallya from the UK to India will speed up the recovery of over Rs 9,000 crore of loans.
In a major boost to India’s efforts to bring back Mallya, who is wanted for loan default worth around Rs 9,000 crore to a consortium of 13 banks led by SBI, a UK court yesterday ordered his extradition.
“It (higher recovery of loans) is a possibility. The message is very loud and clear. What we have to understand is that it (extradition) is a message that you just can’t default and run away from the country,” SBI chairman Rajnish Kumar told reporters here.
He said Mallya’s extradition will have a deep impact on the overall lender and borrower relationship.
“Lending is an important business for both lenders and borrowers as we need investment in the country. But the message is that you have to do clean banking and you have to be very careful about what is the purpose of the money lent,” said Kumar.
Mallya has been fighting a legal battle against his extradition to India, claiming that he has been falsely dubbed as a defaulter.
Good info. Lucky me I discovered your blog by chance (stumbleupon).
I have saved as a favorite for later!