SBI chief meets DFS secretary, says DHFL to be resolved

By Sarkaritel June 28, 2019 18:55

New Delhi, June 28 SBI Chairman Rajnish Kumar on Friday said the CoC and Resolution Professional’s decision will be implemented in case of Jet Airways and lenders will decide on next course of action on DHFL and other accounts under RBI’s June 7 circular .

After one -and-half hour long meeting with the banking secretary, Rajeev Kumar here, the SBI chairman said in case of Jet, the resolution plan and process and the RP are involved.

Claims from banks will come by July 4 and the CoC will be constituted and when the stage for EoI comes, the Resolution Professional will invite EoIs. Those who are eligible and will meet the criteria they can give their plans that time.

A group of employees of Jet on Friday said they would bid for the ailing airline along with Adi Group.

UK Investor AdiGroup will explore revival of Jet Airways through the NCLT process, they announced on Friday. The airline owes Rs 8,500 crore to banks and around Rs 25,000 crore in arrears to vendors, lessors and employees.

He said lenders will decide on the future course of action as per the June 7 RBI circular including DHFL.

The NBFC on Friday deferred its Q4 earnings announcement. Its stock tanked 7 per cent. SBI has about Rs 11,000 crore exposure to DHFL and banks have Rs 40,000 crore funds in DHFL.

But Dewan Housing is not an NPA in the books of banks, the huge exposure is now giving jitters to bankers.

Jet is currently undergoing insolvency process. The SBI chairman declined to comment if he discussed the DHFL issue with DFS secretary saying he would not comment on individual accounts.

The RBI revised circular for resolving stressed assets offers lenders a 30-day period to label an account an NPA. The key details of the new RBI circular are lenders will have complete discretion to design, implement resolution plan.

Banks may start resolution, IBC process within 30 days of default.

By Sarkaritel June 28, 2019 18:55