'IDBI Bank has a positive RoA for last 4 quarters'

IDBI Bank was placed under Prompt Corrective Action (PCA) by RBI in May 2017. The bank has been working on a transformation strategy to improve its profitability, capital adequacy, deposit and advances mix, asset quality and provision coverage ratio. As a result of various strategies, plus capital support from GoI and LIC, the bank has been improving its financial performance.

The bank was able to comply on the major PCA parameters with tier-1 capital at 12.22 per cent and CRAR at 14.77 per cent, net NPA of 1.94 per cent and also leverage ratio at 5.75 per cent. Bank has a positive RoA for the last four quarters.

The bank had a RoA of 0.51 per cent and NIM at 2.87 per cent for the quarter ended December 31, 2020. On operational fronts, CASA is at 48.97 per cent, cost of deposit is at 4.18 per cent and retail business is now constituting almost 60 per cent of overall book has brought in granularity in operations and business mix.

The bank has strengthened its Credit processes across verticals, improved risk management practices, reoriented organisation structure and geared to grow business in a very calibrated manner, with sharpened focus on retail assets and liability franchise, MSME segment and mid corporate segment.

(The author is MD & CEO, IDBI Bank)