The Reserve Bank of India on Thursday announced the names of five members of a panel which looks into the resolution of stressed accounts where a company's exposure exceeds Rs 500 crore.
"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," the RBI said in a statement.
Pradeep Kumar, a former vigilance chief, was named chairman of the five-member panel, which has three former bank chief executives and a leading corporate sector executive among its members.
The panel will oversee restructuring of troubled loans, as it strives to cut more than $150 billion of bad debt banks in Asia's third largest economy have accumulated over the past years, Reuters said in a report on Thursday.
"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 RBI statement said.
The other members of the panel include former SBI chairman Janki Ballabh and bankers M B N Rao and S Raman. Y M Deosthalee, a former finance chief of engineering group Larsen & Toubro, was also named a member of the panel.
The banking regulator had proposed the constitution of a oversight committee under its aegis at the monetary policy conference held earlier this month, and strengthen and expand it to include more members so that the committee could set up requisite benches to deal with the volume of bad loan cases referred to it.
