THE ROAD AHEAD FOR IDBI BANK

IN JUST ONE MONTH, there have been several major developments at IDBI Bank. The leadership issue is settled with the appointment of B. Sriram, who till recently was the MD of India’s largest bank – SBI. The capital issue is also resolved with the likely entry of insurance behemoth LIC as the majority shareholder at the bank. So what’s next? IDBI now has to expand and exploit the safe-bet retail business to improve its share of retail banking both in terms of retail advances, as also low- cost current and savings accounts (CASA). It also needs to accelerate its digital offerings, focus on HR reforms and leadership development. The bank is already on a drive to sell non- core assets to reduce its burden with more liquidity at its disposal for lending, and its cost cutting drive of the past year is also likely to gain momentum and give it a competitive edge.