SBI appoints directors in stressed cos to deal with loan restructuring
"In SBI, we appoint existing senior officials or retired senior officials to act as directors on the board of companies, especially those seeking recast or restructuring. These cases involve complex restructuring, require constant monitoring and follow up as well as time bound programmes," the official said.
The official added those representatives that the bank nominates as directors understand credit and the industry. “It helps us because the representative is present at the board meetings and so we know the progress the company is making. Also they have the expertise to contribute usefully to the company,” the official added.
The official did not name the companies where SBI has already taken up board positions. However, SBI currently has nominee directors in companies like Suzlon and Bharti Shipyard, which are implementing debt-recast packages under the auspices of the corporate debt restructuring (CDR) cell. The move is in line with the call made by the core group of CDR cell which recently authorised the cell to permit the lead banker to appoint new directors to the boards of stressed companies.
A CDR cell official said that in recent times, the need for
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