Internal Group Set To Review Focus

The Industrial Development Bank of India is planning to form an internal working group to review its focus and functioning after the announcement of the Tarapore committee report on capital account convertibility.

"We will have to essentially change our functioning after seeing the recommendations of the Tarapore committee report.

Any bank or institution including the IDBI is not equipped to handle lending business under a scene of the rupee becoming fully convertible," said S H Khan, IDBI chairman and managing director in Mumbai while announcing the results.

"IDBI has commenced restructuring the organisations as well as operations as per the recommendations of management consultant Booz Allen & Hamilton (BAH).

However, we agree that these implementations can become redundant under the changed scenario. We will have to keep pace with the changes in the economy and we will have to re-do the entire re-structuring exercise once again to face global competition," he said.

The institution has completed the reorganisation process at the head office and the branch offices as per BAH recommendations.

The Industrial Development Bank of India has set up a credit committee at the head office, which has powers to sanction assistance within company wise exposure limit of Rs 200 crore. Besides, project loans not exceeding Rs 200 crore will also be handled at the head office.

Further, The Industrial Development Bank of India has set up five zonal committees, one at each zonal office, which would have the power to sanction financial assistance within company wise exposure limit of Rs 50 crore and project loans exceeding Rs 100 crore.

The zonal offices will also monitor operational targets, performance and profitability of branches in their jurisdiction.