IDBI Bank said it has finalized a comprehensive turnaround strategy, which focuses on improving its capital base and implementing an effective recovery plan for its bad loans. M.K. Jain, MD and CEO of the bank, said the bank is looking at all avenues to improve its capital position and bring the bank on a recovery track. The strategy includes aggressive recovery and cost cutting measures and plan on churning the corporate book and risk weighted assets, he added. The bank faced downgrading by rating agencies on account of weakening capital and asset quality and its stocks received big hammering. The bank also said it will employ aggressive recovery measures and prevent further slippages from its books. It will restrict growth in the corporate loan book and focus on increasing retail and priority sector asset base. The bank is now planning to raise additional capital in the medium term and has received a capital infusion of Rs 1900 crore from the government.
