IDBI announces aggressive strategy to build robust retail footprint, enhance capital base

IDBI announces aggressive strategy to build robust retail footprint, enhance capital base

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Lucknow, Jun 22

IDBI Deputy Managing Director KP Nair today announced an aggressive strategy with a focus to build a robust retail footprint, enhance capital base and strengthen customer relationship. The Bank was in the red due to enormous Non-Performing Assets (NPAs) which in 2016-17 stood at around Rs 45,000 crore. Gross NPA was around 21 per cent and net NPA 13 per cent. Denying that there is any move to merge Industrial Development Bank of India with any other lender, Mr Nair asserted that the situation was under control and the process of its revival has commenced. He said, “The bank has carefully crafted a recovery approach to get back on the path of growth and profitability.

Accordingly, our focus will be to increase our retail footprint, make innovations in digital offerings, boost lending in the priority sector, aggressively seek resolution of NPAs and take all possible steps to augment capital base.” Mr Nair affirmed that in 2016-17 Rs 1900 crore capital was pumped into the bank while another Rs 400 crore would be given by Life Insurance Corporation. IDBI is a wholly-owned subsidiary of the Union government which has 75 per cent stakes and LIC 15 per cent. He also added that during 2016-17 the bank’s priority sector lending in UP had grown by 46 per cent, agriculture by 53 per cent and Micro, Small and Medium Enterprises (MSME) by 50 per cent.

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