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IDBI Bank hopes to exit PCA framework this year: MD

IANS  |  New Delhi 

State-run on Thursday said it expected to come out of the RBI's framework (PCA) this year by lowering its net non-performing assets (or bad loans) level, which is the key benchmark for moving out of the PCA restrictions.

The bank's Net have declined to 10.11 per cent, from 16.7 per cent for the fourth quarter of the last fiscal.

"IDBI's performance was good in March 2019. We plan to bring below 9 per cent before June 30 and we will bring these down to 6 per cent by September 30 this fiscal and expect to come out the of PCA in third or fourth quarter", said here after a pre-Budget meeting with the

IDBI Bank's net loss in the fourth quarter ended March narrowed to Rs 4,900 crore, compared with a loss of Rs 5,660 crore in the same period a year-ago.

The bank's provision for bad loans in the fourth quarter stood at Rs 8,532 crore, compared with Rs 10,545 crore in the year-ago quarter.

The IDBI stock was trading lower by 1.78 per cent, at Rs 35.80 a share, in afternoon trade on the BSE.

The PCA framework imposes operational curbs on banks, especially prohibiting big-ticket advances to

Banks have to improve on net interest margins(NIMs), CASA (current account savings account), RWA (Risk Weighted Assets), NPA recognisation, divergence (disparity in loan recognisation), operating profit and non-core asset selling to be able to come out of the PCA.

was acquired by state-run (LIC) with a 51 per cent stake in January 2019.

--IANS

ana/sn/bc

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, June 13 2019. 15:22 IST
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