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IDBI Bank to sell noncore assets worth 50B rupees

IDBI Bank Ltd. CEO Mahesh Kumar Jain said the lender plans to sell noncore assets worth 50 billion Indian rupees during the 2017-2018 fiscal year to rejuvenate its capital, DealStreetAsia reported June 3.

The move comes in light of the bank facing prompt corrective action from the central bank due to negative return on assets and an increase in nonperforming assets. Much of the bank's net nonperforming assets are attributable to corporate clients.

A committee has been formed for the purpose of working out the valuations of the assets, Jain added.

In May, the Indian bank was downgraded by Moody's on its deteriorating asset quality and weak capitalization. IDBI Bank then implementated a turnaround strategy, including the sale of noncore assets and cutting operational costs.

As of June 2, US$1 was equivalent to 64.26 Indian rupees.