<p>Banking regulator, the Reserve Bank of India has set up a three-member panel to assist the recently appointed administrator of the embattled shadow bank -- Dewan Housing Finance Ltd (DHFL).</p>.<p>The Reserve Bank has decided to take the financial institution to the insolvency board as it continued defaulting on debt multiple times, along with concerns over governance. As a result, the central bank had superseded the DHFL board, with the appointment of administrator -- R Subramaniakumar.</p>.<p>The central bank has now appointed three more people, who will act as advisors to administrators.</p>.<p>"The Reserve Bank, in the exercise of powers conferred under section 45 IE 5(a) of the RBI Act 1934, has today constituted a three-member Advisory Committee to assist the Administrator of DHFL in the discharge of his duties," RBI said in a statement.</p>.<p>The administrators include Rajiv Lall, Non-Executive Chairman, IDFC First Bank; N S Kannan, Managing Director and CEO, ICICI Prudential Life Insurance and NS Venkatesh, Chief Executive, Association of Mutual Funds in India.</p>.<p>The books of DHFL have a whopping debt of Rs 84,000 crore, of which 88% is secured with collateral. However, banking sources suggest that this may not be sufficient, as the underlying securities won't be fetching the exact value, given the market conditions.</p>.<p>Lenders are already working at a new plan for resolution after the IBC proceedings against DHFL are admitted to the NCLT. Under this, banks might convert a part of their loans to equity. Lenders also plan to get private equity investors for fresh capital.</p>
<p>Banking regulator, the Reserve Bank of India has set up a three-member panel to assist the recently appointed administrator of the embattled shadow bank -- Dewan Housing Finance Ltd (DHFL).</p>.<p>The Reserve Bank has decided to take the financial institution to the insolvency board as it continued defaulting on debt multiple times, along with concerns over governance. As a result, the central bank had superseded the DHFL board, with the appointment of administrator -- R Subramaniakumar.</p>.<p>The central bank has now appointed three more people, who will act as advisors to administrators.</p>.<p>"The Reserve Bank, in the exercise of powers conferred under section 45 IE 5(a) of the RBI Act 1934, has today constituted a three-member Advisory Committee to assist the Administrator of DHFL in the discharge of his duties," RBI said in a statement.</p>.<p>The administrators include Rajiv Lall, Non-Executive Chairman, IDFC First Bank; N S Kannan, Managing Director and CEO, ICICI Prudential Life Insurance and NS Venkatesh, Chief Executive, Association of Mutual Funds in India.</p>.<p>The books of DHFL have a whopping debt of Rs 84,000 crore, of which 88% is secured with collateral. However, banking sources suggest that this may not be sufficient, as the underlying securities won't be fetching the exact value, given the market conditions.</p>.<p>Lenders are already working at a new plan for resolution after the IBC proceedings against DHFL are admitted to the NCLT. Under this, banks might convert a part of their loans to equity. Lenders also plan to get private equity investors for fresh capital.</p>