'Should be able to reduce NPA to below 12 percent by March 31," said Rakesh Sharma, CEO of IDBI Bank.
IDBI Bank's net loss widened to Rs 4,185 crore in the third quarter ended December 31. Rakesh Sharma, Managing Director and CEO of IDBI Bank, spoke to CNBC-TV18 about the financial results.
"The prompt corrective action (PCA) framework – today IDBI Bank is in threshold III. There are four parameters. One – as far as capital is concerned, we are complied with it today. Two is leveraging – there also we have complied with the parameters. Only two are remaining. One is net non-performing assets (NPAs) – there is improvement from 17.30, it has declined to 14.05 percent and our target is that by March 31, we should be able to bring it down to below 12 percent. From threshold III, we will move to threshold II. Next quarter also, that is June and September, our target will be to reduce it gradually. So that by September, all this parameter also we stand complied with, it will be below 6 percent," Sharma said.
Talking about the profitability, Sharma said, "Once this NPA parameter stands complied with, we are hopeful that our provision coverage ratio (PCR), which is now 75 percent, which improved to almost 85 percent – no further additional provisional will be required. There also, from the next quarter onwards we will start earning profits. Within next two-three quarters, we will come out of PCA."