Edelweiss Asset Reconstruction Company said Wednesday it has received the Reserve Bank of India's (RBI) approval to appoint Mythili Balasubramanian as interim managing director and chief executive officer with immediate effect.
Balasubramanian, who has been with the company for five years, will serve in the post till September 30. She has over four decades of experience in banking, resolution of bad loans, and the Insolvency and Bankruptcy Code processes.
The appointment comes after the RBI rejected the company’s decision to reappoint the erstwhile MD and CEO Raj Kumar Bansal in June last year.
Prior to this, the central bank had directed the asset reconstruction company, which is backed by Canadian pension fund CDPQ, to stop acquiring financial assets including security receipts. Additionally, it had directed Edelweiss group’s non-banking finance subsidiary ECL Finance to stop structured transactions in respect of its wholesale exposures, other than repayment or closure of accounts in its normal course of business.
In December, the RBI lifted restrictions on the two Edelweiss entities.
In its latest press note, the asset reconstruction company said that its board of directors has constituted a search committee to oversee the identification and selection process for a full-time CEO. The committee has appointed consulting firm Korn Ferry to help with the head-hunting.
Edelweiss ARC has nearly Rs 28,000 crore of assets under management and has recovered loans worth more than Rs 55,000 crore. Going ahead, the company said that it is evaluating potential opportunities available in the international stressed assets market and may also consider going public in the next three to five years.
