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Met most conditions, to request RBI to take IDBI Bank out of PCA: Rakesh Sharma

Rakesh Sharma-IDBI Bank-1200
Except for the profitability part as of 30th September 2019, we are complying with all the parameters like capital adequacy, CET 1, leveraging part and the net NPA and we will request RBI to take us out of PCA, says Rakesh Sharma, MD & CEO, IDBI Bank. Excerpts from an interview with Rahul Kumar of ETNOW.

When do you expect to go out of PCA list? How far have you complied with the required guidelines?
Our guidelines and efforts were that by 30th September, we should be able to comply with all the guidelines and the parameters, except of course ROA and I am happy to inform you that except for the profitability part as of 30th September 2019, we are complying with all the parameters like capital adequacy, CET 1, leveraging part and the net NPA.

We will request RBI to take us out of PCA so that we can start doing normal business. It will help us in increasing profitability and do good business.

What are the slippages this quarter and how much is contained?
This quarter we were trying to restrict it to the lowest level, in fact up to Rs 1,000 crore, but managed to keep the slippages at around Rs 2200 crore. But this is still less as compared to Rs 3,486 crore in the previous quarter. Next quarter onwards, we should reduce it further. Hopefully, the way our SME accounts are being controlled and monitored, the slippages will come down further.

As far as NCLT cases are concerned, there is no very good action as far as recovery is concerned. Do you think you will have to change your guidance as far as recovery is concerned?
At NCLT, there is a time-bound plan but somehow because this is a new law, certain issues sometimes need interpretation. These issues are with the Appellate Tribunal and now with Supreme Court and of course about five-six months back, the government had also changed the directives. They had given some clarification. This one major case is pending with the Supreme Court. Once that decision is given, it will be a landmark judgement and after that most of the cases will start getting resolved.

But of course like various recovery measures are there and we are also exploring the possibility of sale of assets to ARCs in those cases where we can settle through a resolution plan.
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