As part of their turnaround strategy, IDBI Bank has announced the formation of a separate vertical having around 100 dedicated staff to recover their mounting non-performing assets (NPAs), which now stand at around Rs 45,500 crores.
Apart from creating this NPA recovery vertical, the bank management has formed a 'Credit Monitoring Group' to find out potential NPAs based on early warning signals, said Deputy Managing Director of IDBI Bank, G M Yadwadkar.
"This vertical will focus only on reducing our NPAs by way of cash recovery as well as the sale of NPAs," he added.
Recently, the Reserve Bank of India has put IDBI Bank along with Dena Bank, Indian Overseas Bank and UCO Bank, under the PCA (prompt corrective action) in view of their mounting non-performing assets.
According to a RBI statement, PCA is a supervision tool initiated in case of some public sector banks with high NPAs.
Apart from these measures to reduce its NPAs, the Bank would also sell off its non-core assets to augment capital.
"In this digital age, the need for physical space is reducing. Thus, we are also planning to surrender such spaces. We would also shift our back office operations from high rent areas to low-rent areas. We strongly believe that all these turnaround measures would have a positive impact on our results in the third or fourth quarter," he said.