Fifty-three years after being set up as a development finance institution and 13 years after its rebirth as a bank, IDBI Bank Ltd today is a shadow of the important institution it once was. In its first quarter after having pulled into prompt corrective action by the Reserve Bank of India (RBI), IDBI Bank’s loan book showed no signs of healing. Its loan book shrank 14% but the lender has hardly been able to bring down its exposure to large corporate borrowers. IDBI Bank qualified as a lender in dire straits as it had breached threshold levels in two out of four parameters the regulator had listed. The IDBI Bank stock has lost a massive 36% since coming under RBI’s corrective plan, which indicates that investors are pessimistic about the lender’s performance.

Source: Mint August 14, 2017 21:56 UTC