IIBI, the only Calcutta-based financial institution, has also chalked out a plan to convert its nine offices into separate profit centres. This is part of an exercise to decentralise operations and manage the balance sheet of the institution in a better manner, Sen added. Sen, a former veteran with the Unit Trust of India, noted that all the offices will have separate balance sheets and profit & loss accounts for the purpose of internal appraisals.

He was speaking at an interactive session with the members of the country's oldest chamber, the Calcutta Chamber of Commerce.

According to Sen, three departments have been constituted -- on risk management, process risk management and on asset reconstruction management. However, he clarified that the issue before IIBI is not non-performing assets, though he refused to specify the NPA level of the institution. Sen said that the first strategic objective is to unlock resources and make them productive by reconstructing the assets. This can be achieved either by financial re-engineering or by reconstructing the debt structure. Another significant aspect of this will be the issue of one-time settlement with the companies in the sick bay.

IIBI was originally set up as Industrial Reconstruction Corp of India, and then turned into the Industrial Reconstruction Bank of India. As the IRBI, it turned into a sick outfit under the burden of NPAs. It was later turned into the IIBI.

IIBI also aims to participate more in the savings and investment market and offer closer links with the growing and emerging sectors in West Bengal, especially information technology.

While developing closer links with the emerging sectors, Sen noted, IIBI will offer services as a syndication for those companies in cases where there is a shortfall in resources, though he did not elaborate on the issue. IIBI is also preparing a roadmap for financing the infotech sector in the state, Sen said.

According to the IIBI chairman, the FI is going to take up a proactive role in West Bengal's development. His vision is to "act as a catalyst for a vibrant financial infrastructure" in the state.

IIBI has widened its product portfolio, though it will continue with project financing. The institution plans to shift from project appraisals to a continuous rating system for instruments.