It holds the unenviable distinction as the bank with the worst-bad loan ratio.
Bloomberg reports that IDBI Bank is selling $1.4b (INR100b) of soured assets in its attempt to recover dues from delinquent borrowers and exit the central bank’s corrective action framework.
With the target of selling its bad loans by end-June, the bank has set up a dedicated team to recover the non-performing loans and established another team to monitor loans that are displaying early signs of stress.
IDBI Bank aims to exit the Reserve Bank of India’s prompt corrective action framework by September as its bad loan ratio narrows and profitability returns. Banks sanctioned by the regulator under this framework are restricted from lending and expanding their network while they mend their balance sheets.
As of end-December, IDBI’s gross bad loan ratio stood at about 30%.
Here’s more from Bloomberg:
Do you know more about this story? Contact us anonymously through this link.