IDBI Bank takes prompt corrective action; all eyes now on Q3 results

The lender has stabilised under LIC ownership, but its exit from the central bank's restrictions may be some time away

Back in May 2017, the Reserve Bank of India (RBI) placed IDBI Bank under prompt corrective action (PCA) on account of its high net non-performing assets (NPA) and negative return on assets (ROA). Though stress levels at IDBI Bank were higher than the system average for the better part of the previous decade, FY17’s net NPA of 13.21 per cent shook the market. Cut to present, with FY20’s number melting to 2.67 per cent. Is the bank reinventing itself as a private outfit under the Life Insurance Corporation of India (LIC)?

To put things in context, LIC came as a