IDBI Bank plans to sell Rs 100-billion bad loans, exit PCA by September

Indian lenders burdened with the world's worst bad-loan ratio are stepping up effort to recover delinquent debt after the Reserve Bank of India announced tougher rules

IDBI Bank Ltd, the lender with India’s worst-bad loan ratio, is seeking to curtail its soured debt by selling Rs 100 billion ($1.4 billion) of stressed assets and stepping up efforts to recover dues from delinquent borrowers.

“We have set up a war room to focus on recovering the non-performing loans while another team is keeping a check on loans showing early signs of stress,” Rakesh Sharma, chief executive officer of IDBI Bank said by phone. The lender wants to sell stressed loans “by June-end to quicken the pace of clean-up exercise.”

Indian lenders burdened with the world’s worst bad-loan ratio are