IFCI’s expert committee to submit report by month end

NEW DELHI, NOV 7: The Expert Committee, under the Chairmanship of D Basu (ex chairman of SBI), on Industrial Finance Corporation of India ...

NEW DELHI, NOV 7: The Expert Committee, under the Chairmanship of D Basu (ex chairman of SBI), on Industrial Finance Corporation of India (IFCI) restructuring, is meeting on Thursday to finalise its report. The report is expected to be submitted by the end of November.

Apart from other aspects of restructuring, the Basu Committee report is also expected to decide on whether IFCI should continue as a financial institution or whether like IDBI and ICICI it should also switch over to universal banking. The broad mandate of the Committee is to find out the position of IFCI in the

changed scenario of the financial sector.

Apart from D Basu, the Committee consists of S D Kulkarni (former managing director of L&T), Amit Mitra (secretary general of FICCI), R S Loda (chartered accountant) and Anoop Mishra (former joint secretary banking, Department of Economic Affairs). Though Anoop Mishra has moved out of the banking division, he continues to be a member of the expert committee, sources added.

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According to FI sources, the committee would submit its report by month end and after deliberation in the IFCI board the recommendations would be put forward before the Reserve Bank of India (RBI). It has been a deliberate decision to keep IFCI members out of the committee since the institution wanted to have an outsider’s view of the restructuring process.

Meanwhile, as a deliberate strategy, IFCI has also decided to keep its exposure within limited amount. The institution has decided not to expand its balance sheet at present and would think of new forays only after the Expert Committee comes out with its recommendations, FI sources added.

In an effort to reduce its non performing assets (NPAs), the institution is going in for one time settlements, restructuring of corporate exposures and also taking the necessary legal steps through debt recovery tribunals, FI sources stated.