New Delhi: The Indian Parliament on Monday cleared the Industrial Development Bank of India Repeal with the Rajya Sabha giving its assent to the Bill. The Bill seeks to convert the financial institution into a universal bank.

Mr Singh said that Rs 770 crore would be pumped into the new bank within this fiscal to enable it to restructure its liabilities. The Finance Minister also reiterated that the Government's holding in the institution would not be allowed to fall below 51 per cent.

The Bill was passed after assurance from Mr Singh that in its banking avatar IDBI would have a five-year exemption from maintaining statutory liquidity ratio and that it would continue to play its development finance role.

On the existing employees of IDBI, the Finance Minister said a special clause had been inserted in the legislation to provide that the existing terms and conditions of both the officers and other IDBI employees would continue.