The bank suffered huge losses and the bankers are now behind bars," pointed out a bank official.Bankers have asked the Reserve Bank of India to enhance the scope of the overseeing committee to vet all types of debt recast. Essar Steel's debt recast is outside S4A and hence outside the purview of the overseeing committee.A consortium of 17 lenders has already classified the Essar Steel loan as sub-standard in the quarter ending March 2016. Beginning March 2017 quarter, banks would have set aside 25% as provisions for Essar Steel. "The proposed decision of the Banks to refer all restructuring to the overseeing committee (OC) for final approval is a policy initiative for all cases that are being taken up by the banks," Essar CFO V Ashok said. IDBI loaned Rs 900 crore to Kingfisher following approval from the board since it was rated below investment grade.

Source: Economic Times March 02, 2017 19:30 UTC