Photo: Indranil Bhoumik/MintMumbai: State-owned IDBI Bank has prepared a comprehensive plan for improving its financial health and reducing stressed assets in light of Reserve Bank of India’s (RBI) recent communication pointing out various weaknesses in the lender. This was the remaining portion of capital infusion of Rs10,610 crore planned by the Government of India for IDBI Bank for 2017-18, aimed at meeting the minimum Tier 1 capital requirements of IDBI Bank. It is to be noted that IDBI Bank is under RBI’s prompt corrective action (PCA) framework. Further, RBI’s recent guidelines have also set strict timeline for recovery of various stressed assets under the IBC. The central bank has withdrawn the mechanism which included corporate debt restructuring scheme, strategic debt restructuring scheme (SDR) and scheme for sustainable structuring of stressed assets (S4A).

Source: Mint April 15, 2018 09:00 UTC