Mumbai: Industrial Development Bank of India (IDBI) is planning to bring down non-performing assets (NPAs) to below 5 per cent of its total loan portfolio by the end of the fiscal year 2002-03. It currently stands at 11.69 per cent.

Asset recovery and rejuvenation have taken precedence over sanctions and disbursements, with the premier term-lender giving recovery targets rather than advance targets to its branches. IDBI officials say branches are expected to show a 100-per cent recovery rate for standard assets.

For substandard assets the target is 25 per cent, and doubtful assets may be recovered to the extent of at least 10 per cent. The extra-cover provided to NPAs was possible because the government rolled over about Rs 2,150 crore of its soft loans to IDBI for another 20 years.

Since the bonds qualify for tier-I capital, the capital adequacy ratio of the institution has improved to 17.86 per cent. The gross NPAs stood at Rs 11,768 crore as on 31 March 2002.

Of IDBIs total assets of Rs 66,625 crore, 88.31 per cent was standard assets, 4.52 per cent substandard and 7.17 per cent doubtful assets. Restructured assets in standard assets amounted to about Rs 4,000 crore.