IDBI
considers universal banking
Our Banking Bureau
5 November 2001
 Mumbai:
The IDBI board
will meet on 12 November to consider a proposal for converting
itself into a universal bank. Some of the options the board will
be considering are a reverse merger with a public sector bank or a
private bank.
A possible merger with
IDBI’s subsidiary, IDBI Bank, will also be considered. IDBI had
informed the RBI on 31 October that a partner would be finalised
in a month’s time. The Boston Consultancy Group will be making a
presentation to IDBI regarding the three possible options and its
financial impact on the institution.
 Earlier,
the IDBI board had almost ruled out the possibility
of a merger with IDBI Bank. But now the management will be
reconsidering the matter in the next board meeting. IDBI Bank
MD Gunit Chadda has gone on record saying that there is no
economic rationale in a merger between IDBI and IDBI Bank. IDBI
Bank chairman MS Verma is also understood to be averse to the
proposal.
Go to list of
reports on IDBI Bank
|
