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    Review decision to appoint K V Kamath as head of expert panel on debt recast: AIBEA to RBI

    Synopsis

    All India Bank Employees' Association (AIBEA) in a letter to RBI Governor Shaktikanta Das alleged that as per media reports, in the FIR filed by the CBI, in addition to the name of former managing director of ICICI Bank Chanda Kochhar, the name of Kamath also appears.

    LoanAgencies
    Last week, the RBI constituted a five-member Expert Committee to make recommendations on the financial parameters to be considered in the restructuring of loans.
    Bank employees' union AIBEA on Sunday urged the RBI Governor to review the decision to appoint K V Kamath as the head of a committee to oversee debt recast, alleging that the name of former ICICI Bank chairman reportedly appears in the FIR filed in a case against Chanda Kochhar.

    All India Bank Employees' Association (AIBEA) in a letter to RBI Governor Shaktikanta Das alleged that as per media reports, in the FIR filed by the CBI, in addition to the name of former managing director of ICICI Bank Chanda Kochhar, the name of Kamath also appears.

    It is alleged that during the tenure of Chanda Kochhar, six loans worth Rs 1,875 crore were cleared for the Videocon Group and its associated companies on quid pro quo basis. It is also alleged that some of the loans were sanctioned during the time when Kamath was non-executive chairman of the bank.

    "It is reported that besides being the former CEO and non executive Chairman of ICICI Bank, he was also a member of the Committee that approved the loan which have now become questionable and are under investigation. Hence, we strongly feel that at this stage, making such a person as Chairman of this Expert Committee is avoidable and needs to be reviewed," AIBEA said.

    Last week, the RBI constituted a five-member Expert Committee under the chairmanship of former ICICI Bank CEO and chairman K V Kamath to make recommendations on the financial parameters to be considered in the restructuring of loans impacted by the COVID-19 pandemic.

    The panel will submit its recommendations to the RBI, which will notify them along with modifications, if any, in 30 days.

    The expert committee will also undertake the process validation for the resolution plans to be implemented under this framework, without going into the commercial aspects, in respect of all accounts with an aggregate exposure of Rs 1,500 crore and above at the time of invocation.


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