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Last Updated : Aug 10, 2020 06:59 PM IST | Source: CNBC-TV18

Bank union approaches RBI seeking review of KV Kamath's appointment as loan restructuring committee head

In a letter addressed to RBI India Governor Shaktikanta Das, AIBEA has expressed concerns about Kamath’s alleged role in the ICICI Bank-Videocon Group loan controversy

CNBC-TV18

The All India Bank Employees’ Association (AIBEA) has requested the Reserve Bank of India to review it's decision to appoint KV Kamath as the head of the Expert Committee on COVID-19-related loan restructuring.

In a letter addressed to RBI India Governor Shaktikanta Das, AIBEA has expressed concerns about Kamath’s alleged role in the ICICI Bank- Videocon Group loan controversy.

“Reports have appeared in the media about the infamous nepotism scandal in ICICI Bank involving Ms Chanda Kochhar for sanctioning huge loan of more than Rs 3,000 crores unscrupulously to Videocon Company. As per media reports, in the FIR filed by CBI, in addition to the name of Ms Chanda Kochhar, the name of KV Kamath also appears,” the letter read.

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AIBEA further wrote, “It is reported that besides being the former CEO and non-Executive Chairman of ICICI Bank, he (KV Kamath) was also a member of the committee that approved the loan which has now become questionable and are under investigation."

“We strongly feel that at this stage, making such a person as Chairman of the Expert Committee is avoidable and needs to be reviewed,” the union urged the Reserve Bank of India.

The regulator named KV Kamath as the head of the expert panel for loan restructuring last week, along with four other members who will submit their recommendations on sector-specific parameters and other considerations within 30 days. The committee is also tasked with reviewing all large resolution plans under this recast scheme involving a debt of over Rs 1,500 crores.

KV Kamath, a veteran banker, was most recently the head of the New Development Bank set up by the BRICS nations. He served as ICICI Bank’s MD & CEO from 1996 to 2009.

Get Chanda Kochhar, the name of KV Kamath also appears,” the letter read.

“It is reported that besides being the former CEO and non-Executive Chairman of ICICI Bank, he (KV Kamath) was also a member of the Committee that approved the loan which has now become questionable and are under investigation,” AIBEA said in its letter.

“We strongly feel that at this stage, making such a person as Chairman of the Expert Committee is avoidable and needs to be reviewed,” the union urged the Reserve Bank of India.

The regulator named KV Kamath as the head of the Expert Panel for loan restructuring last week, along with 4 other members who will submit their recommendations on sector-specific parameters and other considerations within 30 days. The committee is also tasked with reviewing all large resolution plans involving a debt of over Rs 1,500 crores.

KV Kamath, a veteran bankers, was most recently the head of the New Development Bank set up by the BRICS nations. He served as ICICI Bank’s MD & CEO from 1996 to 2009.

Source: CNBC-TV18
First Published on Aug 10, 2020 06:59 pm
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