New Delhi (IANS) - Aiming at a turnaround to augment its capital base and recover from bad loans, the IDBI Bank on Thursday said it has initiated the process to sell its non-core assets over a period of time. "The bank will look at reducing its operational cost and sell non-core assets over a period of time. The exact schedule and quantum of such sale will depend on market conditions. The bank has already initiated the process," the state-run lender said in a statement here.
"We are looking at all avenues to improve our capital position and bring the bank on the recovery track. We will look at aggressive recovery and cost-cutting measures and plan to churn our corporate book and risk weighted assets which should ease pressure on capital," Mahesh Kumar Jain, MD and CEO, IDBI Bank, said.
The bank said it has crafted a comprehensive turnaround strategy, with a focus on augmenting the capital base and recovery from non-performing assets (NPAs).
"Aggressive recovery and prevention of further slippages is a priority area for IDBI Bank. Given the stress in the corporate sector, the bank will restrict growth in the corporate loan book and focus on increasing retail and priority sector asset base. This will help the bank to reduce risk weighted assets and improve capital adequacy ratio (CAR) in the short term," it said.
The bank is also planning to raise additional capital in the medium term. It has received a capital infusion of Rs 1,900 crore through the government's subscription to its preferential share allotment earlier this year. "Additionally, CAR would be improved through sale of non-core assets, continued government support and churning of corporate loan book to reduce risk weight of the portfolio," it said.