You are here: Home » Companies » News
Business Standard

IDBI Bank to establish vertical for recovering Rs 45,000 crore NPAs

The Bank would also sell off its non-core assets to augment capital

Press Trust of India  |  Ahmedabad 


As part of their turnaround strategy, 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 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 recovery as well as the sale of NPAs," he added.

Recently, the Reserve of has put along with Dena Bank, and UCO Bank, under the (prompt corrective action) in view of their mounting non-performing assets.

According to a RBI statement, 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.

First Published: Tue, June 13 2017. 18:21 IST