The Reserve Bank of India has reconstituted the Overseeing Committee (OC) to expedite the resolution of stressed assets in the banking system. The scope of the committee has also been expanded to include cases of stressed assets where the aggregate exposure of the banking sector to the borrowing entity is greater than Rs 500 crore.
In addition to the previous two members, three new members have been added to the OC. They are MBN Rao (former Chairman and Managing Director of Canara Bank), YM Deosthalee (former Whole-time Director and CFO of L&T Group), and S Raman (former CMD of Canara Bank and current Whole-time Member at SEBI). Raman will join the OC on September 7. So far, the committee had only two members - Pradeep Kumar (former Managing Director of State Bank of India) and Janki Ballabh (former Chairman of State Bank of India and former Vigilance Commissioner in the Central Vigilance Commission). Kumar is the Chairman of the OC.
According to the RBI, the OC will, for the present, have five members, including a chairman, and will work through multiple benches as may be necessary and constituted by the chairman to opine on the cases referred to it by the banks.
"The reconstituted OC will work with an expanded mandate to review, in addition to the 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 Rs500 crore.
"The circular advising the banks of the changes and other details of the process to be followed by banks for resolution of identified stressed assets within six months will be issued separately," said the central bank.
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RBI expands OC for stressed assets
By IndianMandarins - 2017-06-23 10:17:33
The Reserve Bank of India has reconstituted the Overseeing Committee (OC) to expedite the resolution of stressed assets in the banking system. The scope of the committee has also been expanded to include cases of stressed assets where the aggregate exposure of the banking sector to the borrowing entity is greater than Rs 500 crore.
In addition to the previous two members, three new members have been added to the OC. They are MBN Rao (former Chairman and Managing Director of Canara Bank), YM Deosthalee (former Whole-time Director and CFO of L&T Group), and S Raman (former CMD of Canara Bank and current Whole-time Member at SEBI). Raman will join the OC on September 7. So far, the committee had only two members - Pradeep Kumar (former Managing Director of State Bank of India) and Janki Ballabh (former Chairman of State Bank of India and former Vigilance Commissioner in the Central Vigilance Commission). Kumar is the Chairman of the OC.
According to the RBI, the OC will, for the present, have five members, including a chairman, and will work through multiple benches as may be necessary and constituted by the chairman to opine on the cases referred to it by the banks.
"The reconstituted OC will work with an expanded mandate to review, in addition to the 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 Rs500 crore.
"The circular advising the banks of the changes and other details of the process to be followed by banks for resolution of identified stressed assets within six months will be issued separately," said the central bank.
