 "IDBI")
Freed from the prompt corrective action (PCA) regime, private lender IDBI Bank is looking to grow its corporate credit book, especially in mid-sized units, in a calibrated manner. It expects to clock an overall credit growth of 8-10 per cent in the next financial year (FY22).
Rakesh Sharma, its managing director and chief executive, told Business Standard that the days of shrinking corporate loan book due to restrictions are over. He said the bank has high-rated corporate clients and will be selective and cautious when it comes to lending to firms and giving advances to industries. The bank, he said, does not want to repeat mistakes of the past. He said that the retail and small and medium-sized enterprises’ share in the total loan book will continue to grow. There were severe curbs on the bank in taking its additional exposure to corporates under the PCA framework. Its corporate advances shrunk 18 per cent, from Rs 77,692 crore in December 2019 to Rs 63,971 crore in December 2020, according to the bank’s presentation.
Rakesh Sharma, its managing director and chief executive, told Business Standard that the days of shrinking corporate loan book due to restrictions are over. He said the bank has high-rated corporate clients and will be selective and cautious when it comes to lending to firms and giving advances to industries. The bank, he said, does not want to repeat mistakes of the past. He said that the retail and small and medium-sized enterprises’ share in the total loan book will continue to grow. There were severe curbs on the bank in taking its additional exposure to corporates under the PCA framework. Its corporate advances shrunk 18 per cent, from Rs 77,692 crore in December 2019 to Rs 63,971 crore in December 2020, according to the bank’s presentation.
