IDBI to focus on M&A route to reduce NPAs
Mumbai: As a part of its latest strategy to combat the rising problem of non-performing assets in its loan portfolio, the country’s leading development bank, Industrial Development Bank of India (IDBI), has decided to focus on the merger and acquisition (M&A) route for turning around defaulting companies. IDBI is already said to be working on a few such deals and results were expected this financial year.

Since a large proportion of their debt was to companies with unviable capacities, the institution is of the opinion that a number of such companies (within the same industry) should merge to create a viable capacity or get acquired by a larger player. The institution said that it will be willing to provide advisory services in this regard as this will not only benefit these companies, but also bring down the bank’s NPA level.
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