A cashier examines Indian rupee banknotes at the Mayuresh Watches and Traders watch and mobile phone store in the Byculla area of Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Panel On Bad Bank To Submit Report Shortly, SBI Chairman Says

State Bank Of India’s Chairman Rajnish Kumar, who is a member of the panel formed to give recommendations for setting up a state-run bad bank, today said they will soon submit the report to the finance ministry.

On June 8, Interim 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.

Goyal gave the panel a fortnight to submit report on the feasibility of setting up an Asset Reconstruction Company/an Asset Management Company for faster resolution of bad loans.

“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,”
Rajnish Kumar, Chairman, SBI

The Interim Finance Minister 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’s Managing Director B Sriram has resigned following his appointment as chief executive of the crippled IDBI Bank.

Also read: SBI’s Managing Director Sriram Resigns Amid IDBI Bank Stake Sale Buzz

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, today refused to comment.

When asked about Sriram's resignation, SBI Chairman Kumar 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 June 22 following MK Jain demitting office to take over as a deputy governor of the RBI.