Government to Provide Rs. 3000 crore Bailout (खैरात) Package to IDBI Bank
The government has announced to bailout IDBI Bank with Rs. 3,000-crore capital infusion (प्रेरणा) to enable the bank to have better capital-adequacy(पर्याप्तता) ratio and further enhance credit growth. The financial assistance will help the bank to maintain stability. IDBI Bank’s lending portfolio is mostly in
corporate segment(खंड) and that is one of the major reasons for increase in its bad loans. In December quarter of 2016, IDBI had a net loss of Rs.2,255 crore against Rs.2,184 crore in December quarter 2015. Similarly, the Gross Non-Performing Assets (GNPAs) rose to Rs. 35,245 crore at December end 2016 from Rs. 30,134 crore in the previous quarter. Bailout : A bailout is a situation in which a business, an individual or a government offers money to a failing business to prevent the consequences(परिणामों) that arise from the business’s downfall. Bailouts can take the form of loans, bonds, stocks or cash.
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