Connect with us

Hi, what are you looking for?

News

IDBI Bank to focus on retail biz

IDBI Bank will focus on its retail business as part of its transformation plan, says MD and CEO Kishor Kharat. He said the bank will cut down its exposure to corporate lending by 2019. Giving details of the transformation plan, Kharat said the share of retail business will be increased to 21% by 2019 from the current 14% and the corporate lending portfolio will be brought down to 37% from 43%. The plan will be implemented from 1 April 2016, he added. On the liabilities side, the bank will take the share of CASA deposits to 35% from the present 25% while the proportion of bulk deposits would be cut to 32% from 44%. The bank is also expected to double its business to Rs 10 lakh crore by 2019, Kharat said. The government has indicated that it will reduce its stake in the bank to below 50%, making the bank a private entity. At present, the government holds 80.16% in the bank. The bank is planning to raise Rs 3771 crore by way of qualified institutional placement in one or more tranches which will bring down government stake by about 16%. It is also looking to sell its non-core assets as it plans to raise Rs 3000 crore. Kharat also confirmed that the bank has enquiries from UK’s CDC and Singapore’s GIC to acquire a stake in the bank.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PR Newswire

Copyright © Glocal Infomart Pvt Ltd. All rights reserved. Usage of content from website is subject to Terms and Conditions.