NPA crisis: Panel on bad bank to submit report shortly, says SBI chief Rajnish Kumar

Mumbai: State Bank of India (SBI) chairman Rajnish Kumar, who is a member of the panel formed to give recommendations for setting up a state-run bad bank, on Thursday said they will soon submit the report to the finance ministry. On 8 June, finance minister Piyush Goyal had announced the formation of a committee under the chairmanship of Punjab National Bank non-executive chairman Sunil Mehta and the SBI chairman and Bank of Baroda managing director PS Jayakumar as members. The minister gave the panel a fortnight to submit their report on the feasibility of setting up an asset reconstruction company (ARC)/an asset management company (AMC) for faster resolution of bad loans. [caption id=“attachment_4111571” align=“alignleft” width=“380”] File photo of SBI chairman Rajnish Kumar. News18[/caption] “We have crossed the deadline but 99 percent of the work is over. After giving some finishing touches, it will be presented to the finance ministry soon,” Kumar told reporters here after the bank’s AGM here. Goyal had said the panel would consider whether such an arrangement will be good for the banking system that is fighting its worst bad loan problem, and, if any such suggestion is advisable, it will also consider the modalities by which such an ARC/AMC should be set up. Meanwhile, it has been learnt that SBI managing director B Sriram has resigned following his appointment as chief executive of the crippled IDBI Bank. Government had last week appointed Sriram as managing director and chief executive of IDBI Bank for three months. According to sources, Sriram has put in his papers and his resignation from has been forward to the Appointments Committee of the Cabinet headed by the prime minister for acceptance. Sriram, however, on Thursday refused to comment. When asked Kumar about Sriram’s resignation, he said, “it is something that you should wait a little bit more. Earlier also we managed with three MDs many times.” Sriram took charge of IDBI Bank on 22 June following MK Jain demitting office to take over as a deputy governor of the RBI.