The Hindu Business Line : IDBI to raise Rs 10,000 cr via bonds

Industrial Development Bank of India (IDBI) proposes to raise Rs 10,000 crore by way of bond issuances during the current financial year, according to the Chairman, Mr V.P. Shetty.

Speaking to press persons on the sidelines of a branch inauguration here today, Mr Shetty said IDBI has an adequate equity base with a healthy capital ratio of 15-16 per cent.

It has the option of issuing tier-II bonds to meet any additional capital requirements in the future.

Commenting on the current interest rate scenario, he said, there were no signs of an immediate rise in interest rates.

He also ruled out any need to raise the rates in the immediate future.

However, there is the possibility of interest rates moving up by 25-50 basis points over the next six months if there is a rise in inflation, he said.

The bank expects its business — deposits, advances and borrowings — to touch Rs 1,50,000 crore by the end of the current fiscal as against Rs 1,30,000 crore in the previous fiscal.

The bank also plans to grow its retail portfolio by Rs 10,000 crore and is targeting Rs 16,000 crore for project finance, he added.

IDBI opened its Mumbai main branch at IDBI Tower, Cuffe Parade for business today.

The bank also launched its first multi-functional kiosk for its clients in the branch premises.

The kiosk has a touch-screen with a metallic keyboard to enable transaction-oriented services. Besides, the kiosk provides several other value-added services to the bank's customers as well as non-customers.

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