Aparna Lucknow, India 601 Questions 0 Answers 0 Best Answers 678 Points View Profile Aparna Asked: October 12, 20212021-10-12T20:28:08+05:30 2021-10-12T20:28:08+05:30In: Economics What is K. V. Kamath Committee Report? What is K. V. Kamath Committee Report? bankingcurrent affairs Share Facebook 1 Answer Recent Sagar 31 Questions 177 Answers 34 Best Answers 572 Points View Profile Sagar 2021-10-14T03:36:03+05:30Added an answer on October 14, 2021 at 3:36 am Context: Reserve Bank of India released the K V Kamath-led Committee report, which had recommended financial parameters to be factored in the resolutions under the ‘Resolution Framework for Covid19-related Stress’ along with sector-specific benchmark ranges for such parameters. Stressed Assets Stressed assets = NPAs + Restructured loans + Written off assets. Non-Performing Assets: A loan whose interest and/or installment of principal have remained ‘overdue ‘ (not paid) for a period of 90 days is considered as NPA. Restructured asset: Restructured assets or loans are that assets which got an extended repayment period, reduced interest rate, converting a part of the loan into equity, providing additional financing, or some combination of these measures. Written off assets: Written off assets are those the bank or lender doesn’t count the money borrower owes to it. Recommendations of the K. V. Kamath Committee The K.V. Kamath committee recommended a graded approach to the restructuring stressed accounts based on the severity of the impact on the borrowers. The committee has allowed banks to classify the accounts into mild, moderate, and severe as recommended by the committee. In line with the mandate given by the RBI, the Kamath committee has identified four financial parameters including. Total outside liabilities to adjusted tangible net worth. Total debt to EBITDA Debt service coverage ratio (DSCR) Average debt service coverage ratio (ADSCR). About K.V. Kamath Committee In August 2020, RBI had formed a five-member committee under the chairmanship of former ICICI Bank CEO KV Kamath to make recommendations on the financial parameters to be considered for the one-time restructuring of loans impacted by the Covid 19 pandemic. The Indian Banks’ Association (IBA) functioned as the secretariat to the commie. Indian Banks’ Association (IBA) Indian Banks’ Association (IBA) is an association of Indian banks and financial institutions. It was formed on 26 September 1946 in Mumbai as a representative body of management of banking operating in India. 0 Reply Share Share Share on Facebook Share on Twitter Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer. Related Questions What is Pathalgadi? What is Bodo Accord?
Reserve Bank of India released the K V Kamath-led Committee report, which had recommended financial parameters to be factored in the resolutions under the ‘Resolution Framework for Covid19-related Stress’ along with sector-specific benchmark ranges for such parameters.
Recommendations of the K. V. Kamath Committee
About K.V. Kamath Committee
Indian Banks’ Association (IBA)