IDBI Bank has formalized an arrangement with Boston Consulting Group (BCG) to help it take up its turnaround program more effectively and improve financial performance. The program, called ‘Project Nishchay’, is aimed at accelerating the pace of business recovery of the bank. It will be managed by senior management of the bank and personnel from BCG, the bank said. MD and CEO Mahesh Kumar Jain said BCG will assist the bank to identify areas for cost containment and revenue maximization leading to sustainable growth and profitability. He hoped that the exercise will help the bank to identify and address existing gaps, capitalize on core strengths and improve existing products and processes. The bank’s statement said the bank will focus on four key areas – revenue enhancement, cost control and reduction, asset productivity and overall program management in consultation with BCG. The bank is now under the central bank’s prompt corrective action framework. Inclusion in that list requires the bank to conserve capital and find ways to return to profitability. It is not allowed to open new branches or lend to potentially risky companies now.
