Mahesh Kumar Jain, MD and CEO of Indian Bank have been appointed as MD and CEO of IDBI Bank. Mahesh Kumar Jain will head IDBI Bank for the remaining period of his current tenure or until further orders, whichever is earlier, IBDI Bank added.
IDBI Bank has decided to limit its fresh loan disbursements to corporate sector due to rising quantum of bad loans. Simultaneously, the bank has decided to expand its business in retail loan segment. The decision has been taken to arrest the burgeoning non-performing assets.The bank has witnessed a significant rise in its non-performing assets by Rs. 5,111 crore at Rs. 35,254 crore during the third quarter of FY17.
The Central Government of India is set to invest Rs. 3,000 crore in IDBI Bank as a bailout package. The infusion of funds is expected to help the bank in maintaining its capital adequacy ratio and revive its falling credit growth. Earlier the bank has received approval from board of directors to divest some of its non core activities through which the bank expects to raise Rs. 5,000 crore.
IDBI Bank has reduced its home loan interest rates by 60 basis points for new home loan borrowers. The revised home loan interest rate now stands at 8.55 percent as compared to 9.15 percent earlier. The new rate is effective from 1st February, 2017.
IDBI Bank has reduced its overnight and three months marginal cost of lending rates to 8.50 and 8.85 percent as compared to 8.75 and 9.15 percent earlier. The revised MCLR for six months and one year now stands at 8.90 and 9.15 percent respectively. Similarly, three year MCLR has reduced to 9.30 percent as compared to 9.70 percent earlier. The rates are effective from 1st January, 2017.
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