In his book ‘Title’custodian of trust’, Kumar said dealing with the Jet Airways issue was one of the toughest tasks during his crucial stint as the head of the country’s largest lender.
Most of the banks were extremely reluctant to support a resolution plan for Jet Airways, he wrote, recalling the development regarding the resolution plan of the airline, which unfortunately could not pass as the promoters were not able to meet the required conditions. Were. scheduled time.
“For me too, it was one of the most challenging cases, even State Bank Of India The Board felt uncomfortable in supporting me on this issue, not because I did not enjoy their support or goodwill, but because they felt it posed a great threat to the reputation of the Bank.
“Consequently, they did not want to be a party to such a decision without obtaining a clear letter of support from the Department of Financial Services (DFS) or MoCA (Ministry of Civil Aviation). I had not faced such a difficult situation in my entire time Two years long stint at the helm of affairs in SBI, but I saw it as a major learning experience that came in handy in solving the Yes Bank crisis.”
Eventually, the company ceased operations on April 17, 2019 – a sad day in the history of civil aviation in India, when one of the country’s best airlines had to shut down, Kumar said in a book published by Penguin Random House India. (PRHI).
Subsequently, in June 2019, the Mumbai bench of the NCLT allowed an insolvency petition filed by a consortium of lenders led by the State Bank of India (SBI) against Jet Airways.
Jet Airways owes over Rs 8,000 crore to a consortium of lenders led by SBI, besides liabilities of over Rs 25,000 crore to its vendors.
Kumar further said that he has little hope for the revival of the airline as there is hardly any asset to return as its planes are mostly leased and the slots are airport assets. He said the revival of a closed airline has virtually no precedence.
“Unlike the RBI, which has broad powers to protect a financial entity, the aviation sector has no such authority. Financing of airlines remains a high-risk business for banks, as has the losses incurred by banks. High-profile cases like the failure of Kingfisher Airlines and Jet Airways,” he said.
Kumar had a three-year tenure (October 2017-October 2020) as the head of SBI, which alone has a market share of over 20 per cent.
In the book, he said that the period during which he assumed office cannot be called ‘normal’ under any circumstances.
When he took over the reins of SBI, the Indian banking industry was going through its toughest phase as the non-performing assets (NPAs) were at a record high after the Asset Quality Review (AQR).
The problem of non-performing loans (NPLs) had severely affected the balance sheets and profitability of banks, coupled with the failure of some major non-banking financial companies (NBFCs) and the near collapse of the fourth-largest private sector lender. . He said in the book that the bank posed a serious threat to the private sector banking system of the country.
Kumar shares his “incredible journey” as a banker through his memoir – from joining SBI as a probationary officer in 1980 to becoming its chairman in 2017 – during his career in India’s banking sector. Capturing the many changes observed.
Prior to his appointment as Chairman, he was Managing Director (National Banking Group) at SBI, overseeing retail business and digital banking. He was instrumental in ensuring cash flow to every nook and corner of the country through the vast network of banks during demonetisation.
The book has received endorsements from India Inc and the banking industry stalwarts.
While Tata Sons Chairman Emeritus Ratan Tata called the book a “chronicle of contemporary economic history”, Kotak Mahindra Bank CEO Uday Kotak said the book has the potential to be a “Bollywood blockbuster”.
Kumar currently serves as a Director on the Boards of HSBC Asia Pacific, L&T Infotech Limited and Lighthouse Communities Foundation. Last month, he was appointed as the Economic Adviser by the Andhra Pradesh government for a period of two years. He has been given cabinet rank status.