IDBI Bank : Chennai Zone Highlights - focus on Retail, Priority Sector Portfolios

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.

Chennai Zone  Highlights

Chennai Zone has 116 retail branches with Rs 16863 Crore of Retail business. The Current and Savings Bank Account (CASA) and Retail Term Deposits registered a strong growth of 39% and 25% respectively during the FY 2016-17. The Structured Retail Loan Portfolio has grown by 8%. The Priority Sector Loan Book of the zone stands at 73% as against the prescribed 40%. 

Advance to Agriculture sector and Micro Segment constitutes 36% and 28% respectively. Gross NPA in Structured Loan Portfolio stands at 1.28%.

Rabinarayan Panda , 
Field Chief General Manager, 
Chennai Zone, IDBI BANK

Chennai Zone achieved 114% of the Fee Income Budget. Zone has chalked out the plan to grow all its

Books by more than 25% and contain the Gross NPA at below 1% level in structured Retail assets during the FY 2017-18 as said by Mr. Rabinarayan Panda , Field Chief General Manager , Chennai Zone.

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