The move includes sale of pledged assets and invoking promoter Vijay Mallya’s personal guarantees.
Some of the 18-member lenders' consortium, led by State Bank of India, is meeting on Wednesday to finalise course for legal action.
The bankers, who met the airline’s management in Mumbai on Tuesday, said they had given the airline enough time to infuse fresh equity and come up with a loan repayment plan.
But there has been no response, said SBI Deputy Managing Director Shyamal Acharya.
He said the value of the Kingfisher brand, Mallya's personal guarantee and pledged assets would be more than the exposure.
The debt-laden airline has been grounded since October 2012.
Acharya said lenders would initiate legal action to recover loans shortly.
The boards of individual banks would finalise the steps for recall in 7-10
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