IDBI Bank May Seek Easing Of RBI Restrictions, CEO Rakesh Sharma Says
“There are a lot of restrictions. Normal business will allow us to increase profitability,” says IDBI Bank’s MD Rakesh Sharma.
IDBI Bank Ltd. may urge the Reserve Bank of India to ease restrictions to resume normal business.
“As on Sept. 30, we have complied with all the parameters that are stipulated for prompt corrective action, excepting those relating to return on assets,” Managing Director and Chief Executive Officer Rakesh Sharma told BloombergQuint in an interview on Monday.
“So far, there are a lot of restrictions, like doing only retail business,” he said. “Normal business will allow us to increase income earning assets and thereby, increase our profitability.”
IDBI Bank has been under RBI's PCA framework that bars it from corporate lending and branch expansions, salary hikes and other regular activities. The lender, however, has charted out a revival strategy to bring banking and insurance under one roof, along with its new owner Life Insurance Corporation of India.
IDBI Bank Q2 Results: Key Highlights (Year-on-Year)
- Net interest income rose 25.4 percent to Rs 1,631.5 crore.
- Net loss narrowed to Rs 3,458.8 crore from Rs 3,602.5 crore.
- Provisions were at Rs 3,544.9 crore versus Rs 5,481.6 crore (Rs 7,009.5 crore QoQ).
- Gross NPAs were at 29.43 percent versus 29.12 percent in the preceding quarter.
- Net NPAs stood at 5.97 percent versus 8.02 percent in the April-June period.
Watch | CEO Rakesh Sharma On IDBI Bank’s Quarterly Performance