This was the remaining portion of capital infusion of Rs 10,610 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.A sum of Rs 2,729 crore was infused last year. Prior the recent series of capital infusion, the government had 77.8 per cent stake in the bank.RBI, in its communication to the Finance Ministry , had also raised the need for more robust risk assessment and improvement in credit underwriting standard. The bank is in the process of addressing these two concerns, sources said.It is to be noted that IDBI Bank is under RBI's prompt corrective action (PCA) framework. Gross non-performing loans were pegged at Rs 50,622 crore at the end of December 2017, 24.72 per cent of advances. The central bank has withdrawn the mechanism which included Corporate Debt Restructuring Scheme, Strategic Debt Restructuring Scheme (SDR) and Scheme for Sustainable Structuring of Stressed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).The Joint Lenders' Forum (JLF) as an institutional mechanism for resolution of stressed accounts was also discontinued.

Source: Economic Times April 15, 2018 08:37 UTC