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Review KV Kamath's appointment as head of debt recast panel: AIBEA to RBI

The bank employees' union has alleged that veteran banker Kamath's name reportedly appears in the FIR registered in a case against former managing director of ICICI Bank Chanda Kochhar

twitter-logoBusinessToday.In | August 10, 2020 | Updated 13:06 IST
Review KV Kamath's appointment as head of debt recast panel: AIBEA to RBI
K V Kamath

The All India Bank Employees Association (AIBEA) has urged the Reserve Bank of India (RBI) Governor Shaktikanta Das to review the decision about appointment of ICICI Bank's former CEO and non-executive chairman K V Kamath as head of expert committee on resolution framework for coronavirus-related stressed assets.

The bank employees' union has alleged that veteran banker Kamath's name reportedly appears in the FIR registered in a case against former managing director of ICICI Bank Chanda Kochhar. In a letter to Das, AIBEA alleged that according to the media reports, in the FIR filed by the CBI, the name of Kamath also appears in addition to the name of Chanda Kochhar.

"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 loans 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.

On Friday, RBI had announced the constitution of an expert committee under Kamath to suggest financial parameters for resolution of stressed assets amid the coronavirus crisis. The committee 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.

The other members of the committee are Diwakar Gupta (effective September 1, 2020, after the completion of his term as vice-president of ADB); T N Manoharan (effective August 14, 2020, after the completion of his term as chairman of Canara Bank). Ashvin Parekh will be strategy advisor, and the Indian Banks' Association CEO will function as member secretary of the panel.

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