Public sector lender bank IDBI with the consultation of Boston Consulting Group (BCG) has started “Project Nishchay” a turnaround plan with a vision to speed up struggling lender’s turnaround programme and to improve financial performance. The “Project Nishchay” will undergo under the leadership of senior management of IDBI bank alongwith BSG.
The bank is under the Reserve Bank of India’s incite corrective activity structure which implies that the bank needs to conserve capital and discover approaches to come back to profitability. The bank is likewise not permitted to open new branches or loan to possibly risky organizations.
BCG will help IDBI to distinguish the different cost reducing sections and income raising methods which will lead the bank towards reasonable development and productivity of the Bank will be improved.
As a major aspect of the activity IDBI bank will concentrate on four key ranges – income improvement, cost control and decrease, better efficiency of resources and general program administration in meeting with BCG.
Earlier in June, the IDBI bank had reported a loss of amount Rs. 853.01 Crore in comparison with Rs 241.10 crore profit the lender reported in the same quarter last year. With NPA(Non Performing Assets) ratio of more than 24 percent, bank is at the top of the list of banks with high amount of bad loans.