DBI Bank to focus on retail, priority sector portfolios
Bangalore, June 10, 2017: 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 theyear 2016 – 17 posed challenges, the bank’s major thrust will be on rebalancingthe business portfolio in coming months. The bank will tap emerging opportunityto grow its business, with a focus on propelling notably the retail andpriority sector book.
In fact, thebank has made headway as evidenced in the rising share of retail advancesto 43% as at end-March 2017 from 33% as at end-March 2016. The Bank’s CASAdeposits 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.
Reimaginingthe 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 withthese new initiatives, recovery of bad loans and prevention of furtherslippages will be a priority area for the bank in the short term. Giventhe stress in the corporate sector, the bank will restrict growth in thecorporate loan book and focus on increasing retail and priority sector assetbase. This will help the bank to reduce risk weighted assets and improve CAR inthe short term.
Also, thebank will look at reducing its operational cost and sell non-core assets over aperiod of time.