IDBI Bank has decided to focus more on its retail business as part of its rebalancing strategy. In the next 18 months, the bank has set a target 40% of its total loan book should be retail, compared to 28% currently.
The bank hopes to turn around in the next two years with its new initiatives. Around June last year, the bank’s 78% of the book was corporate, while 22% was retail. As of March 2014, 72% was corporate and 28% retail. In the next 18 months it is targeting for 60% corporate and 40% retail. The bank’s current book size is around Rs 4.23 lakh crore and by end of 2016 the bank set a target to increase it to Rs 6.25 lakh crore.
IDBI Bank is one of the 16 consortium lenders to Kingfisher Airlines. Kingfisher Airlines defaulted in its payment obligations to the Banks and Banks have jointly taken several recovery actions against the Company and its promoter.
