Current Affairs

‘Project Nishchay’ Launched by IDBI Bank

IDBI Bank has launched ‘Project Nishchay’ along with The Boston Consulting Group (BCG).

‘Project Nishchay’ Launched by IDBI Bank
  • The aim is to accelerate its turnaround programme and improve financial performance.
  • Senior management at IDBI Bank along with BCG will lead the project
  • BCG will assist IDBI bank to identify areas for cost containment and revenue maximization leading to sustainable growth and profitability of the Bank.
  • IDBI Bank, with a gross NPA ratio of over 24 percent, has the highest concentration of bad loans on its books, among the listed banks in India. 
  • The bank is under the Reserve Bank of India's Prompt Corrective Action framework.
  • PCA Framework means that the bank has to conserve capital and find ways to return to profitability. 
  • RBI has restricted IDBI to open new branches or lend to potentially risky companies. 

The Bank will focus on four key areas -
  • Revenue enhancement, 
  • Cost control and reduction, 
  • Asset productivity and 
  • Overall program management in consultation with BCG.

About IDBI Bank

  •  It was previously known as Industrial Development Bank of India, headquartered in Mumbai, India.
  • It was established in 1964 by an Act of Parliament.
  • The bank was opened provide credit and other financial facilities for the development of the fledgeling Indian industry.
  • Its headquarters is in Mumbai.
  • Mahesh Kumar Jain is the Managing Director & CEO of the bank
‘Project Nishchay’ Launched by IDBI Bank ‘Project Nishchay’ Launched by IDBI Bank Reviewed by Ramandeep Singh on September 29, 2017 Rating: 5

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