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IDBI to invest ₹700 crore in digital lending business this fiscal
July 26, 2023
Private sector lender IDBI Bank is planning to invest ₹600 crore to ₹700 crore in the bank’s information technology and digital lending business in 2023-24, said Rakesh Sharma, Managing Director and Chief Executive Officer (MD and CEO). This is part of the ongoing expansion plans in these verticals, he said.
The bank surpassed the recovery target it set last year and is looking at recovering more than ₹4,000 crore worth of bad loans in FY24.
In an exclusive interaction with Moneycontrol after announcing the bank’s April-June FY24 results, Sharma also spoke on the bank’s plans to enter co-lending and partnerships with fintech and non-banking financial companies (NBFC) for lending to education and personal loan segments.
Last year, we set a target of ₹4,000 crore for recovery and by the end of the FY 2022-23 we were able to surpass the target and recovered around ₹5,600 crore. This year, we had earlier set ₹3,000 crore as our target but in the April-June FY24 quarter, we recovered ₹1,600 crore. So for FY24, we hope to recover ₹4,000 crore from bad loans.
We have full-fledged non-performing asset (NPA) monitoring and credit monitoring departments. In the past, our recovery in some power companies was slow and now we are trying to maximise our recovery when it comes to big companies.
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