Reserve Bank of India Sets Up Three-Member Advisory Panel To Assist DHFL Administrator Discharge His Duties

The Reserve Bank of India (RBI) has constituted a three-member advisory committee to assist the recently appointed administrator of DHFL to carry out his duties.

The panel includes Rajiv Lall, Non-Executive Chairman, IDFC First Bank Ltd; N S Kannan, Managing Director and CEO, ICICI Prudential Life Insurance Co; and NS Venkatesh, Chief Executive of the Association of Mutual Funds in India.

It may be recalled that the RBI took control of the DHFL board and appointed R Subramaniakumar, the former chief executive of state-run Indian Overseas Bank as its administrator recently, due to “governance concerns and defaults by DHFL in meeting various payment obligations".

DHFL's owes its lenders nearly Rs 1 lakh crore, including several mutual funds, banks, pension funds, insurance firms and retail investors.

DHFL's insolvency will be by far the largest process handled by tribunals in the three years since the bankruptcy code was enacted, with nearly Rs 1 lakh crore owed to a list of more than 85,000 financial creditors.

Incidentally, its financial creditors range from banks to mutual funds and pension funds to deposit holders.