The Reserve Bank of India (RBI) on Friday constituted a three-member advisory committee to assist DHFL's administrator in discharge of his duties.
The three-member advisory committee would comprise of Rajiv Lall, non-executive chairman, IDFC First Bank Ltd, N S Kannan, managing director and CEO, ICICI Prudential Life Insurance Co. Ltd, and NS Venkatesh, chief executive, Association of Mutual Funds in India.
The appointment is in line with Insolvency and Bankruptcy Code rules that provide for the concerned financial sector regulator appointing a committee of advisors to advise the administrator in the operations of the financial service provider during the insolvency resolution process.
The RBI on Wednesday had appointed R Subramaniakumar, former managing director and chief executive of Indian Overseas Bank, as the administrator of DHFL, to run the affairs of the entity which was once controlled by the Wadhawan family.
Banking sources said the size of DHFL’s debt on book is large (about Rs 94,000 crore) and its administrator will need assistance in creating a resolution plan. The administrator will also finalise the timetable for financial performance review.
Lenders are already working at a new plan for resolution after the IBC proceedings against DHFL are admitted in the NCLT. Under this, banks might convert a part of their loans to equity. Lenders also plan to get private equity investors for fresh capital.