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RBI Imposes Restrictions on IDBI Bank to Prevent Further Losses
May 12, 2017
Taking a corrective action on the IDBI Bank the Reserve Bank of India has restricted it from giving big ticket loans, opening new branches, and hiring new staff. This kind of action is usually taken when the bad loans of a bank go beyond 6%.
The measures taken by the RBI are to ensure that IDBI reduces expenses and fixes the bad loans problems.
The bank suffered a staggering loss of 2,255 crores during the December quarter last year, mainly because of the bad loans. Realizing the gravity of the poor performance, RBI decided to free its big-ticket lending and put restrictions on its expenses.
