IDBI Bank to seek approval for Rs 8,000 cr rupee bond borrowing for FY22

on Tuesday said it is seeking approval for rupee bond borrowings worth Rs 8,000 crore for the next fiscal.

A meeting of the board of directors will take place later this week.

“It is hereby informed that a meeting of board of directors of Ltd will be held on Friday, March 26, 2021 to consider the proposal for approval of rupee bond borrowings limit of Rs 8,000 crore for FY2021-22,” said in a regulatory filing.

The LIC-controlled bank is just out from the RBI’s prompt corrective action framework.

Its Managing Director and CEO Rakesh Sharma earlier this week said that the bank will now look to grow its business in a calibrated way with more focus on profitability and in improving efficiency ratios.

On March 10, the Reserve Bank of India (RBI) removed IDBI Bank from its prompt corrective action (PCA) framework, which was imposed in May 2017, after it had breached certain regulatory thresholds, including capital adequacy, asset quality and profitability.

“With restrictions imposed by the RBI gone, we will like to go in a calibrated way and grow the business in a more profitable fashion so that my efficiency ratios improve. Our revenue, profitability and other ratios will certainly show improvement,” Sharma said on Sunday.

The bank is targeting to improve net interest margin (NIM) to 3 per cent, return of assets (ROA) at above 0.60-0.70 and cost to income ratio to below 50 per cent.

In the nine months ended December 2020, its NIM stood at 2.79 per cent and cost to income at 54 per cent.

IDBI Bank stock closed at Rs 39.40 apiece on the BSE, up 5.35 per cent from the previous close.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link

Free Course

"Double Your Traffic in 30 days" + Secret Bonus

valued at $299

This amazing course will teach you, step by step, how to double if not triple your traffic over the next 30 days.

100% Privacy. We will never spam you!