Private sector lender IDBI Bank is planning to invest Rs 600 crore to Rs 700 crore in the bank’s information technology and digital lending business in 2023-24, said Rakesh Sharma, Managing Director and Chief Executive Officer (MD and CEO). This is part of the ongoing expansion plans in these verticals, he said.The bank surpassed the recovery target it set last year and is looking at recovering more than Rs 4,000 crore worth of bad loans in FY24.In an exclusive interaction with Moneycontrol after announcing the bank’s April-June FY24 results, Sharma also spoke on the bank’s plans to enter co-lending and partnerships with fintech and non-banking financial companies (NBFC) for lending to education and personal loan segments. Edited excerpts:Last year, we set a target of Rs 4,000 crore for recovery and by the end of the FY 2022-23 we were able to surpass the target and recovered around Rs 5,600 crore. This year, we had earlier set Rs 3,000 crore as our target but in the April-June FY24 quarter, we recovered Rs 1,600 crore. So for FY24, we hope to recover Rs 4,000 crore from bad loans.We have full-fledged non-performing asset (NPA) monitoring and credit monitoring departments. In the past, our recovery in some power companies was slow and now we are trying to maximise our recovery when it comes to big companies.We see fintech companies as competitors because they have different areas of expertise whereas we have different areas of expertise.Also, we are looking at some partnerships and co-lending deals with fintechs alongside non-banking financial companies for lending to home, education and personal loan segments.In the credit card space, we do not have much presence and our advances are very less, except for some cards with LIC Cards. There are some issues in the sector and only after those, keeping the standard processes in line we can work in the segment. But in the years to come, we may look at the segment.Earlier, we did not have some of the loan products which we plan to introduce in the digital segment. For this, we are planning to invest around Rs 600 crore to Rs 700 crore in FY24 in our digital and IT business..Earlier, our bank did not have much focus on the gold loan segment. But we have observed that there is a demand emerging from the segment, alongside it offers good security aspects. Currently, our portfolio for the segment is at around Rs 11,000 crore, which we may look at expanding ahead.Alongside strong recovery, we are looking at bringing down our gross NPA. Whereas for net NPA, we are looking at maintaining it under the 1 percent mark.

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