IDBI Bank to shore up capital

8 Jun 2017

IDBI Bank has crafted a comprehensive turnaround strategy, with a focus on augmenting its capital base and recovery from NPAs.
Dr. S.S. Banerjee, Executive Director, IDBI Bank, while unveiling the strategy stated “Aggressive recovery and prevention of further slippages is a priority area for IDBI Bank. Given the stress in the corporate sector, the Bank will restrict growth in the corporate loan book and focus on increasing retail and priority sector asset base. This will help the Bank to reduce risk weighted assets and improve CAR in the short term.” 
Krishnendu Banerjee, Chief General Manager and Zonal Head of West Bengal, Bihar and the North-East, added “We affirm that the basic operations of the Bank, as borne out by a seven fold rise in operating profit in Q4 of FY ‘17 over Q3, among others, remain robust. The virtual confluence of other factors and continued Government support and trust in the Bank’s intrinsic business viability as its largest shareholder (88% equity share along with quasi-Government LIC) and the turnaround strategy adopted by the Bank with a pronounced accent on a ‘capital-light’ business model and pruning of operating cost, will stand IDBI Bank in good stead and help it regain its vitality and privileged standing of yore in the emerging domestic banking system.”  (EOIC)