IDBI Bank has launched ‘Project Nishchay’ along with The Boston Consulting Group (BCG).
The Bank will focus on four key areas -
- 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
