IDBI bank to focus on retail, priority sector portfolios

IDBI Bank has launched an aggressive turnaround strategy with a focus on building a robust retail portfolio, enhancing capital base and strengthening customer relationship. While the year 2016 – 17 posed challenges, the bank’s major thrust will be on re-balancing the business portfolio in coming months. The bank will tap emerging opportunity to grow its business, with a focus on propelling notably the retail and priority sector book. KP Nair, deputy managing director of IDBI Bank said, “The bank has carefully crafted a recovery approach to get back on the path of growth and profitability.” Reimagining the customer experience in an increasingly digital world is another key area. The bank introduced innovations such as UPI App ‘PayWiz’, social media banking ‘Facebook –‘iEngage’ for retail internet banking customers and digital passbook ‘mPassbook’ on android platform. The bank also launched ‘Winnings’ Rupay Select Credit Card to enhance its digital offerings.” Along with these new initiatives, recovery of bad loans and prevention of further slippages will be a priority area for the bank in the short term. Given the stress in the corporate sector, the bank will restrict growth in the corporate loan book and focus on increasing retail and priority sector asset base. This will help the bank to reduce risk weighted assets and improve CAR in the short term. Also, the bank will look at reducing its operational cost and sell non-core assets over a period of time.