Kolkata, Apr 10: Industrial Investment Bank of India (IIBI) would look for synergies with commercial banks to enable itself access cheap sources of funds, IIBI acting head Madhukar said today. He told reporters at the sidelines of a seminar organised by Bengal Chamber of Commerce here that the real problem with IIBI, A Development Financial Institution (DFI), was that it did not have access to sources of cheap funds as compared to commercial banks.
Madhukar, the chairman of UBI, has just taken over the additional charge of IIBI.
He said efforts would be made to share the assets between IIBI and commercial banks which would also allow them to park their funds to profitable use.
By doing this, IIBI would be able to come out of the difficulties which it was now beset with, he added. Madhukar said the DFI was also suffering from high levels of non-performing assets, which was almost 30 per cent of total advances.
Bureau Report