Joint Lenders’ Forum Empowered Group (JLF – EG)
A. Sometimes Boards of the banks find it difficult to approve the decisions taken by JLF as the JLFs do not have senior level representations from the participating lenders. In this regard, it is clarified that, although RBI has not explicitly prescribed the level of representation in its guidelines, banks are expected to depute sufficiently empowered senior level officials for deliberations and decisions in the meetings of JLF.
B. Nevertheless, it has been decided that JLF will finalise the CAP and the same will be placed before an Empowered Group (EG) of lenders, which will be tasked to approve the rectification/restructuring packages under CAPs. The JLF-EG shall have the following composition:
i. A representative each of SBI and ICICI Bank as standing members;
ii. A representative each of the top three lenders to the borrower. If SBI or ICICI Bank is among the top three lenders to the borrower, then a representative of the fourth largest or a representative each of the fourth and the fifth largest lenders as the case may be;
iii. A representative each of the two largest banks in terms of advances who do not have any exposure to the borrower; and
iv. The participation in the JLF-EG shall not be less than the rank of an Executive Director in a PSB or equivalent.
The JLF convening bank will convene the JLF-EG and provide the secretarial support to it.