NEW DELHI: SBI’s board members have been eager on a letter of help from the federal government earlier than giving nod to the decision plan of crisis-ridden Jet Airways, the financial institution’s former chairman Rajnish Kumar has mentioned.
In his guide titled ‘The Custodian of Belief’, Kumar mentioned coping with the Jet Airways difficulty was the some of the tough assignments that he had confronted throughout his eventful time period as the pinnacle of the nation’s largest lender.
A lot of the banks have been extraordinarily reluctant to help a decision plan for Jet Airways, he wrote, whereas recalling the developments with regard to the decision plan of the airline which sadly couldn’t get by as promoters weren’t capable of fulfil the required circumstances within the stipulated time.
“For me too, this was some of the difficult circumstances with even the SBI board being uncomfortable in backing me on this difficulty, not as a result of I didn’t take pleasure in their help or goodwill however as a result of they felt that it posed an enormous danger to the fame of the financial institution.
“Consequently, they didn’t need to be occasion to such a call with out receiving an express letter of help from the Division of Monetary Providers (DFS) or the MoCA (ministry of civil aviation). I had not confronted such a tough state of affairs all through my two-year lengthy tenure on the helm of affairs at SBI, however I considered it as a serious studying expertise that got here in helpful in resolving the YES Financial institution disaster,” he mentioned.
Finally, the corporate stopped operations on April 17, 2019 — a tragic day within the historical past of civil aviation in India, when among the best airways within the nation needed to be grounded, Kumar mentioned within the guide revealed by Penguin Random Home India (PRHI).
Subsequently, the Mumbai bench of the NCLT in June 2019 admitted an insolvency petition towards Jet Airways filed by the lenders’ consortium led by State Financial institution of India (SBI).
Jet Airways owed over Rs 8,000 crore to a consortium of lenders led by SBI, in addition to liabilities of over Rs 25,000 crore in the direction of its distributors.
Kumar additional mentioned he has little hope for the revival of the airline as a result of there are hardly any belongings to again as its planes are principally taken on lease and slots are the property of airports. Revival of a grounded airline has nearly no priority, he famous.
“In contrast to the RBI, which has wide-ranging powers for rescuing a monetary entity, the aviation sector has no such authority. The financing of airways stays a high-risk enterprise for banks, as has been repeatedly confirmed by the losses incurred by banks in high-profile circumstances just like the failures of Kingfisher Airways and Jet Airways,” he identified.
Kumar had an eventful three-year tenure (October 2017-October 2020) as the pinnacle of the SBI, which alone has over 20 per cent market share.
Within the guide, he mentioned the interval throughout which he took cost can’t be termed as ‘regular’ beneath any circumstances.
When he took over the reins of SBI, the Indian banking business was going by one in all its most tumultuous phases as non-performing belongings (NPAs) have been at document excessive degree after Asset High quality Evaluation (AQR).
The issue of non-performing loans (NPLs) had severely impacted the stability sheet and profitability of banks, coupled with the failure of some outstanding non-banking monetary corporations (NBFCs) and the near-collapse of the fourth largest non-public sector lender Sure Financial institution, posed a severe menace to the non-public sector banking system of the nation, he mentioned within the guide.
Kumar by his memoir shares his “unimaginable journey” as a banker — from becoming a member of SBI as a probationary officer in 1980 to turning into its chairman in 2017 — capturing the various modifications he witnessed in India’s banking sector throughout his profession.
Previous to his appointment as chairman, he was managing director (Nationwide Banking Group) at SBI, overseeing the retail enterprise and digital banking. He was instrumental in guaranteeing money to each nook of the nation by the huge community of the financial institution throughout demonetisation.
The guide has acquired endorsements from the stalwarts of India Inc and the banking business.
Whereas Tata Sons chairman Emeritus Ratan Tata referred to as the guide “a chronicle of up to date financial historical past”, Uday Kotak, CEO of Kotak Mahindra Financial institution, mentioned the guide has the potential to be a “Bollywood blockbuster”.
Kumar at present serves as director on the boards of HSBC Asia Pacific, L&T Infotech Ltd and Lighthouse Communities Basis. Final month, he was appointed as financial advisor by the Andhra Pradesh authorities for a interval of two years. He has been accorded a cupboard rank place.
In his guide titled ‘The Custodian of Belief’, Kumar mentioned coping with the Jet Airways difficulty was the some of the tough assignments that he had confronted throughout his eventful time period as the pinnacle of the nation’s largest lender.
A lot of the banks have been extraordinarily reluctant to help a decision plan for Jet Airways, he wrote, whereas recalling the developments with regard to the decision plan of the airline which sadly couldn’t get by as promoters weren’t capable of fulfil the required circumstances within the stipulated time.
“For me too, this was some of the difficult circumstances with even the SBI board being uncomfortable in backing me on this difficulty, not as a result of I didn’t take pleasure in their help or goodwill however as a result of they felt that it posed an enormous danger to the fame of the financial institution.
“Consequently, they didn’t need to be occasion to such a call with out receiving an express letter of help from the Division of Monetary Providers (DFS) or the MoCA (ministry of civil aviation). I had not confronted such a tough state of affairs all through my two-year lengthy tenure on the helm of affairs at SBI, however I considered it as a serious studying expertise that got here in helpful in resolving the YES Financial institution disaster,” he mentioned.
Finally, the corporate stopped operations on April 17, 2019 — a tragic day within the historical past of civil aviation in India, when among the best airways within the nation needed to be grounded, Kumar mentioned within the guide revealed by Penguin Random Home India (PRHI).
Subsequently, the Mumbai bench of the NCLT in June 2019 admitted an insolvency petition towards Jet Airways filed by the lenders’ consortium led by State Financial institution of India (SBI).
Jet Airways owed over Rs 8,000 crore to a consortium of lenders led by SBI, in addition to liabilities of over Rs 25,000 crore in the direction of its distributors.
Kumar additional mentioned he has little hope for the revival of the airline as a result of there are hardly any belongings to again as its planes are principally taken on lease and slots are the property of airports. Revival of a grounded airline has nearly no priority, he famous.
“In contrast to the RBI, which has wide-ranging powers for rescuing a monetary entity, the aviation sector has no such authority. The financing of airways stays a high-risk enterprise for banks, as has been repeatedly confirmed by the losses incurred by banks in high-profile circumstances just like the failures of Kingfisher Airways and Jet Airways,” he identified.
Kumar had an eventful three-year tenure (October 2017-October 2020) as the pinnacle of the SBI, which alone has over 20 per cent market share.
Within the guide, he mentioned the interval throughout which he took cost can’t be termed as ‘regular’ beneath any circumstances.
When he took over the reins of SBI, the Indian banking business was going by one in all its most tumultuous phases as non-performing belongings (NPAs) have been at document excessive degree after Asset High quality Evaluation (AQR).
The issue of non-performing loans (NPLs) had severely impacted the stability sheet and profitability of banks, coupled with the failure of some outstanding non-banking monetary corporations (NBFCs) and the near-collapse of the fourth largest non-public sector lender Sure Financial institution, posed a severe menace to the non-public sector banking system of the nation, he mentioned within the guide.
Kumar by his memoir shares his “unimaginable journey” as a banker — from becoming a member of SBI as a probationary officer in 1980 to turning into its chairman in 2017 — capturing the various modifications he witnessed in India’s banking sector throughout his profession.
Previous to his appointment as chairman, he was managing director (Nationwide Banking Group) at SBI, overseeing the retail enterprise and digital banking. He was instrumental in guaranteeing money to each nook of the nation by the huge community of the financial institution throughout demonetisation.
The guide has acquired endorsements from the stalwarts of India Inc and the banking business.
Whereas Tata Sons chairman Emeritus Ratan Tata referred to as the guide “a chronicle of up to date financial historical past”, Uday Kotak, CEO of Kotak Mahindra Financial institution, mentioned the guide has the potential to be a “Bollywood blockbuster”.
Kumar at present serves as director on the boards of HSBC Asia Pacific, L&T Infotech Ltd and Lighthouse Communities Basis. Final month, he was appointed as financial advisor by the Andhra Pradesh authorities for a interval of two years. He has been accorded a cupboard rank place.
Supply: Times of India