IDBI Bank, placed under prompt corrective action (PCA) by the Reserve Bank a month ago, will not allow further slippages of bad loans and is make efforts to reduce non-performing assets every quarter, Rabinarayan Panda, field chief general manager of the bank said on Thursday.
“Recovery of bad loans is not only our priority. Besides, we would like to prevent further slippages to NPAs. We will try to bring down NPA every quarter,” he told reporters here. “Very large corporates constitute about 78% of NPA. They are not purely with IDBI Bank, but lent as a consortium. Resolution is time taking.”
IDBI had reported gross non-performing asset (NPA) of ₹44,753 crore for the year ended March 31, 2017.
“We have initiated aggressive turnaround strategy with a focus on building a robust retail portfolio, enhancing capital base and strengthening customer relationship and recovering NPAs,” Mr. Panda said.
The state-owned lender has formed two groups — NPA management group and credit monitoring group, he said. Non-performing assets were being monitored on a monthly basis.
The bank has also resorted to reducing operational costs by merging branches and selling non-core assets over a period of time.
Besides, the bank will reduce its exposure to corporate sector and instead focus aggressively on retail lending, Mr. Panda said.
