Lenders want panel to vet non-S4A cases for loan recast

Arrest of IDBI executives triggers such a move

The country’s lenders are treading a cautious path. Like the process followed for the scheme for Sustainable Structuring of Stressed Assets (S4A), they want the Overseeing Committee (OC) to vet all big-ticket loan restructuring proposals. 

The OC reviews the processes involved in preparation of the resolution plan to ensure reasonableness and compliance with RBI guidelines.

The move was triggered by the arrest of former top officials, including a past chairman, of IDBI Bank, for lending to the now defunct Kingfisher Airlines, despite the airline’s stressed loans. 

A senior State Bank of India (SBI) group executive said bankers want this as they do not