Jamshedpur, June 6: Hit by weak profitability and deteriorating asset quality, state-run IDBI Bank on Wednesday said it has formulated a turnaround strategy focusing on augmenting capital base and NPA recoveries.
Reserve Bank of India through its prompt corrective action (PCA) framework is giving special attention on IDBI bank so that its financial condition can improve. RBI also made it clear that through PCA framework it would not have any impact on the normal customer operations at the bank.
The bank�s newly appointed managing director and CEO, Mahesh Kumar Jain, said, �We are looking at all avenues to improve our capital position and bring the bank on the recovery track”.
Jain said the bank will look at reducing its operational cost and sell non-core assets over a period of time. �We will look at aggressive recovery and cost cutting measures and plan on churning our corporate book and risk weighted assets which should also ease the pressure on capital,� he said.
The bank further said the focus now would be more on retail and priority sector and will limit its growth in corporate segment, due to higher stress in the sector. �This will help us to reduce risk weighted assets and improve capital adequacy ratio (CAR) in the short term,� Jain said.