Expressing concern over the poor financial position of public lender IDBI Bank, Reserve Bank of India (RBI) has sent a written communiqué to the Ministry of Finance.
The letter that was sent earlier this month, pointed out several inadequacies namely the rising menace of Non-Performing Assets (NPAs) in the bank.
An inspection conducted by the RBI revealed that the bank’s mechanism to detect NPAs is not up to the mark and the gravity of the problem could be higher than what’s been reported.
However, from the past few months, the bank has perked up its recovery mechanism pertaining to NPAs. The bank has even set up a separate management for handling bad loans, said a senior official from the bank.
He even claimed that the bank would be able to turn around the situation in the next one and a half year.
