Hyderabad: State-run IDBI Bank on Thursday announced that it has created a new division to manage and monitor bad loans and credit.
In the past few months, the bank was at the wrong end of the stick as RBI put the bank “under watch” while ratings agency Icra downgraded its ratings.
Speaking to the media, IDBI Bank executive director Pothukuchi Sitaram said, “At the head office level, we have set up a separate department what we call it a NPA management group to monitor and manage both bad loans and credits.”
The department, which is 150-member strong, contains a mix of experienced people from corporates and retail and the department is going forward on case-by-case basis.
The Reserve Bank of India last month put IDBI Bank under watch by initiating Prompt Corrective Action against it, that placed various restrictions on the lender.
When asked about capital buffer, Mr P. Sitaram said the bank is working on improving its position before going for raising any funds by way of
issuing perpetual bonds or selling non-core assets.
