Ghosh explained that after suffering accumulated losses of 45,000 crore rupees between FY16 and FY20, a 50,000 crore rupee capital infusion helped bring IDBI's gross NPA down from 31% to under 2%, generating 35,000 crore rupees in cumulative profits over five years. Defending the strength of public sector lenders, Ghosh emphasized: 'The banking system today is actually in the best of health after all the efforts which has been unveiled in the last decade or so.' Declining to discuss corporate governance issues regarding Tata Group clients, he maintained that India possesses a robust regulatory governance culture monitored by SEBI.
'IDBI Bank is already a private bank from FY19': Soumya Kanti Ghosh
In an exclusive interview, Soumya Kanti Ghosh, Group Chief Economic Advisor of SBI and part-time member of the EAC-PM, addressed the ongoing political debate over the IDBI Bank stake sale. He clarified that IDBI Bank is already classified as a private lender by the RBI since FY19, noting that the government and LIC will retain a 34% stake post-offload.
