Hit by weak profitability and deteriorating asset quality, state-run IDBI Bank on Thursday said it had formulated a turnaround strategy focusing on augmenting capital base and recovery from bad loans.
“We are looking at all avenues to improve our capital position and bring the bank on the recovery track,” the bank’s newly-appointed managing director and chief executive officer, Mahesh Kumar, Jain stated.
In the year ended March 31, 2017, the bank posted a net loss of Rs 5,158 crore as against net loss Rs 3,665 crore in fiscal 2016.
The bank’s gross NPAs almost doubled to 21.25 per cent of the gross advances in the fourth quarter of the last fiscal compared to 10.98 per cent in the corresponding period of the previous financial year.