The Reserve Bank of India (RBI) has reconstituted the oversight committee (OC) that will over see resolution of Rs 2.5 lakh crore debt from 12 large companies.
The five-member committee headed by Pradeep Kumar, a former vigilance chief. It will have three former bank chief executives and a leading corporate sector executive - Janki Ballabh former SBI chairman, MBN Rao former chairman of Canara Bank, YM Deosthalee and S Raman former chairman of Canara Bank, among its members. Raman who is currently serving as the whole time member of the Securities and Exchange Board of India (Sebi) will join the committee when his term gets over on September 7, the central bank said in a release. Y M Deosthalee, is a former finance head of engineering group Larsen & Toubro (L&T).
"The reconstituted OC (overseeing committee) will work with an expanded mandate to review, in addition to cases being restructured under the Scheme for Sustainable Structuring of Stressed Assets, resolution of other cases where the aggregate exposure of the banking sector to the borrowing entity is greater than Rs 500 crore (Rs 500 crore)," the central bank said in a statement.
RBI said that the reconstituted OC will work with an expanded mandate to review, in addition to cases being restructured under the Scheme for Sustainable Structuring of Stressed Assets (S4A), resolution of other cases where the aggregate exposure of the banking sector to the borrowing entity is greater than Rs 500 crore.
Bankers were demanding the setting up of OCs so that their decisions will not be called to question by investigative agencies. Decision making in the banking sector had come to a complete standstill after the arrest of three senior IDBI officials for sanctioning of unsecured loans to Vijay Mallya King Fisher which later had to shut down unable to cope up with the rising losses. The oversight committees will share the responsibility.
