Bangalore, June 8, 2017: IDBI Bank has launched an aggressive turnaround strategy with a focus on building a robust retail portfolio, enhancing capital base and strengthening customer relationship.
While the year 2016 – 17 posed challenges, the bank’s major thrust will be on rebalancing the business portfolio in coming months. The bank will tap emerging opportunity to grow its business, with a focus on propelling notably the retail and priority sector book.
In fact, the bank has made headway as evidenced in the rising share of retail advances to 43% as at end-March 2017 from 33% as at end-March 2016. The Bank’s CASA deposits as well as Retail Term Deposits both grew by over 22% during the year. Also, the share of CASA deposits and Retail Term Deposits increased to over 31% and 32%, respectively, during the year.
Reimagining the customer experience in an increasingly digital world is another key area. The Bank introduced innovations such as UPI App ‘PayWiz’, Social Media banking ‘Facebook – iEngage’ for retail internet banking customers and digital passbook ‘mPassbook’ on Android platform.
Along with these new initiatives, recovery of bad loans and prevention of further slippages will be a priority area for the bank in the short term. 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 CAR in the short term.
Also, the bank will look at reducing its operational cost and sell non-core assets over a period of time.
Bangalore has witnessed a 16% rise in the customer base from 12,32,328 to 14,24,923.
The Current Account Savings Account deposits and Retail Term Deposits registered a strong growth of 39% and 25% respectively. Total Retail Business has grown by 18%.