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Business Economy


Review decision of Kamath as Head of Expert Committee on Resolution framework : AIBEA to RBI Guv

Hyderabad, Aug 9 (UNI) All India Bank Employees' Association (AIBEA) on Sunday sought review of the decision of Reserve Bank of India (RBI) appointing former ICICI Bank CEO and non-Executive Chairman K V Kamath as Chairman of Expert Committee on Resolution Framework for COVID-19 related stress.
In a letter to RBI Governor Shaktikantha Das, AIBEA General Secretary Ch Venkatachalam said, on August 6 RBI had announced the setting up of an Expert Committee on Resolution Framework for Covid19-related Stress, as a special window under the Prudential Framework on Resolution of Stressed Assets issued on June 7, 2019.
The Expert Committee is to make recommendations on the required financial parameters to be factored in the resolution plans, with sector specific benchmark ranges for such parameters.
It shall 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 aggregate exposure of Rs. 1500 crore and above at the time of invocation.
The RBI has constituted the Expert Committee under the Chairmanship of Mr Kamath.
In this regard, Mr Venkatachalam said we may draw your kind attention to the reports that have appeared in the media about the infamous nepotism scandal in ICICI Bank involving Ms. Chanda Kochar for sanctioning huge loan of more than Rs. 3000 crore unscrupulously to Videocon Company.
As per media reports, in the FIR filed by the CBI, in addition to the name of Ms. Chanda Kochar, the name of Mr K V Kamath also appears. 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.
He said recently, Mr Kamath's name was also making rounds in the media that Government was considering him to be appointed as Finance Minister. Of course, no such development took place, he added.
Incidentally, we recall that in the year 1999, Confederation of Indian Industry (CII) appointed a Task Force on NPA in Banks and Mr Kamath was the head of that Committee.
This Committee recommended closure of Indian Bank and privatisation of Banks like SBI and Bank of Baroda.
AIBEA questioned the Committee and its recommendations as one of the member of that Committee himself was a bank loan defaulter. AIBEA also released the name of that Company in which that member was a Director.
It also opposed the recommendations and ultimately those recommendations were shelved, the AIBEA General Secretary said.
Today Indian Bank is one of the best run Banks and everyone also knows the growth and progress of SBI and Bank of Baroda under public sector.
'We hope and wish RBI to review the decision and reconstitute the Expert Committee', the top Union leader contended.
UNI CS 1935
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