IF THIS WILL CONTINUE THE...BANKS NEED NOT ABLE TO....FINANCE....ANY 1 ALL THE BANKS COME UNDER PCA

IF THIS WILL CONTINUE THE...BANKS NEED NOT ABLE TO....FINANCE....ANY 1 ALL THE BANKS COME UNDER PCA....

 

wrong! Only big ticket loans are banned,for all small retail loans...life goes on as susual

 

this is the mail i recieved from IDBI bank CEO"....As you might be aware, in its erstwhile role of DFI, IDBI had financed various large projects in the Indian infrastructure sectors such as Road, Power and Communication, thereby playing a major role in nation building. Since its conversion into a commercial bank, IDBI has been lending to retail customers as well, and the share of its retail loan portfolio is increasing. However, repayment capacity of some of the corporate borrowers had been affected in the recent past due to various factors including those related to domestic and global economy. The loss reported by the Bank in FY 2017 was largely on account of provisions made towards loans given to the core sectors of the economy. These legacy issues have to be recognized and resolved and we are committed to finding a solution at the earliest, under the guidance of the Ministry of Finance, Reserve Bank of India (RBI) and the Board of the Bank. We are already working on a strategy aiming towards improving Bank's capital position, augmenting recovery and improving profitability.I must also mention here that RBI's PCA framework does not restrict the Bank's deposit taking, lending or any other regular banking operations. Instead, it is intended to strengthen the Bank's balance sheet. This has been made amply clear by RBI vide its press release dated June 5, 2017 which was issued in view of certain misinformed communication about PCA, circulating in some section of media, including social media.Let me therefore assure you that the basic operations of the Bank remain robust. The Bank is owned by Government of India. Our retail banking segment continues to enjoy your support as reflected from the fact that Bank's Current Accounts ; Savings Accounts (CASA) and Retail Term Deposits portfolio have grown substantially in FY 2017.As such, continue enjoying your banking experience with IDBI Bank, especially our digital platforms, which are being continually upgraded for superior delivery of services to make your experience more delightful.With best regards,Mahesh Kumar JainMD ; CEO "