Apart from filing winding cases, IDBI has worked out compromise settlement with 75 companies during 1999-2000, which is almost double than the number of settlements during 1998-99. Also, during the last five years, one time settlement has been arrived at in 344 cases involving total dues of Rs 3,289 crore by the institution.

The crystallised amount under one time settlement was Rs 1,613 crore. The total sacrifice by the institution was estimated at Rs 1,676 crore. During the five years an amount of around Rs 900 crore out of total dues of Rs 1,900 crore was recovered by IDBI. In the same period, IDBI had given 64 financial guarantees involving an amount of Rs 7,000 crore to 56 companies.

During this period, an amount of Rs 312.3 crore had devolved on IDBI.The institution has been appointed as the operating agency in respect of almost 600 companies which includes IDBI assisted as well as non-assisted units. It has submitted 216 operating agency reports to the Board of Industrial and Financial Restructuring (BIFR) in the last five years. The number of cases in the last five years aggregated to 139.

The performance of the weaker units is intensively monitored and reasons for unsatisfactory performance are studied ad classified into various categories, - companies facing temporary problems, companies whose performance has been affected in the short run, companies which have become unviable on account of change in environment and companies where performance has suffered on account of lackadaisical management and lack of commitment.

Depending on the degree, IDBI provides need-based financial input to the company to enable it to tide over the temporary liquidity constraints by extending reliefs and concessions such as rescheduling, reduction in interest rate for short problems and considers to conversion of debt into equity, interest into zero coupon debentures and interest free funded interest to reduce finance cost for otherwise viable companies having long-term problem. As a part of rehabilitation measures, attempts are made to re-rate equity, thereby, to reduce the accumulated losses so as to make net worth positive early and facilitate in raising resources from the public. However, where the promoters are non-cooperative and indulge in running the units in non-professional manner urgent steps are taken to appoint concurrent auditor with direct reporting relationship to institution.

Besides to ensure financial discipline and to inculcate good corporate governance within the organisation audit committee at board level is constituted.

Legal measures like recalls of loans, invoking of personal guarantee, filing of application with DRT are selectively resorted to recover the dues where normal measures are completely exhausted.