XTRAS: It received the National Award 2016 instituted by Ministry of MSME, for excellence in lending to MSMEs
SWOT ANALYSIS
Strengths
• IDBI has been known for introducing cutting edge product through innovation.
• It succeeded to contain its NPA at acceptable level.
• It has diversified its revenue model. It has ventured into different sector hence less dependency.
Weakness
• Declining market share is a major concern. It also resulted in eroding revenue over the past year.
• Diversifying its business into other sectors meant less resource for the banking business.
Oppurtunity
• Growing economy presents a great opportunity to provide financial cover to more people.
• Central Government currently holds 45.5% of its share, it can get more involved in government schemes.
Threats
• It has very less penetration in rural India.
• Recent frauds and scams have made a dent on company's brand image.
• Fintech and Neo Payment Bank are taking away its innovator advantage.
FUTURE PROSPECT
• Explore avenues to grow corporate credit book, especially in the mid-corporate segment.
• Credit cost and net slippages ratio to be below 1.75% and 3% respectively on sustained basis as COVID impact may continue up to March 2022. PCR to be maintained above 90% level.
• GNPA to be gradually brought down with focus on recovery efforts as COVID effect may exist up to March 2022. Net NPA level to be maintained below 2.5% till March 2022 and 2% thereafter.
• With rumors around for alleged disinvestment of GOI stake, it is set to get a major overhaul in FY 2022.
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