Led by an executive director, the vertical will have around 100 employees across the country.
IDBI Bank has announced plans to establish an exclusive vertical to recover their mounting non performing assets (NPAs), according to a PTI report.
“Our total NPAs stand at approximately Rs 45,500 crore. As part of our turnaround strategy, we have decided to expedite the recovery by forming a separate vertical, which will have around 100 employees across India and it will be headed by an executive director,” Deputy Managing Director of IDBI Bank, G M Yadwadkar was quoted as saying.
The separate vertical will be aimed at only reducing the bank’s NPAs by way of cash recovery as well as sale of NPAs.
IDBI Bank has also formed a ‘Credit Monitoring Group’ to ascertain potential NPAs based on early warning signals.
It is worth mentioning here that in the light of mounting NPAs, the central bank had recently put IDBI Bank along with Dena Bank, Indian Overseas Bank and UCO Bank, under the prompt corrective action (PCA).