From 31% bad loans to a sale-ready bank: How IDBI got here
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The Centre is selling its stake in IDBI Bank after a major turnaround.
- ✓Gross bad loans fell from 31.78 per cent in September 2018 to 2.32 per cent in March 2026.
- ✓The government infused ₹25,000 crore to clean the balance sheet.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Business Line
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
The Centre’s decision to sell a controlling stake in IDBI Bank rests on a turnaround that required retrieving it from the RBI’s Prompt Corrective Action Framework with NPAs running to 31.78 per cent to a point where its balance sheet was clean enough to sell.
While official committees had been recommending such a move for a quarter century, the government had been infusing capital in the Bank since 2018 when its gross non-performing assets had climbed to nearly a third of its advances and capital adequacy ratio had fallen to 6.22 per cent.
This stage was reached following a series of bad loans during the 2006-08 lending boom, which went to well-connected promoters with a history of default.
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