IDBI Bank is planning to set off accumulated losses of about Rs 44,500 crore against the balance standing to the credit of the Securities Premium Account (SPA) after the declaration of its fourth quarter (Q4FY21) financial results. According to the Draft Scheme for setting off accumulated losses as on April 01, 2021 against SPA, this balance sheet neutral exercise of re-arrangement of liabilities will enable the bank to represent its true financial position. It will also help the bank to raise resources via AT (Additional Tier) 1 Bonds in the near future as it will become eligible to make coupon payments. Further, this will place the bank in a better position to achieve its turnaround plan (including coming out of the so-called prompt corrective action/PCA) in a time-bound manner. The bank would also be able to pay the dividend as per the applicable provisions within a reasonable time-frame.