IDBI Bank: High NPAs, new bad loan rules seen offsetting inflows

IDBI Bank has joined the bandwagon of public sector banks (PSBs) rushing to sell their non-core assets to strengthen their balance sheet.

Recently, the lender sold a commercial building for Rs 9 billion, taking the total non-core asset sales to over Rs 41 billion in FY18. Also, the government provided Rs 106.1 billion recapitalisation amount, the highest among PSBs, to this cash-starved bank.

But these efforts seem insufficient given the bank’s high net non-performing assets (NPAs) worth Rs 293.5 billion as of December 2017, which is 16 per cent of its net advances and 1.2 times its net worth. IDBI