The Hindu Business Line : IDBI open to growth through acquisitions — Focus now on branch, ATM network expansion

THE Industrial Development Bank of India (IDBI) in its post-merger avatar has chalked out a growth strategy that includes acquisition and merger of banks with strong presence in commercial banking space and reasonable global presence.

Disclosing this to the media here on Wednesday, the IDBI Chairman, Mr V.P. Shetty, said the bank has decided to keep its `eyes and ears open' for acquisitions in the commercial banking area. However, it was not aggressively pursuing the inorganic growth route at present.

The acquisition targets would be looked into as and when opportunities arise.

"We prefer to acquire a bank in the commercial banking space, either public or private sector entity, that has a network of at least 100 branches in the domestic market and reasonable overseas presence."

He said the bank was seriously looking at presence in the Gulf, South East Asia, US and UK. The bank was eyeing a slot among the top commercial banking majors in the country through both organic and inorganic routes in the next three years.

As a part of its organic growth strategies, IDBI plans to go aggressive in expanding its network of delivery channels, both branches and automated teller machines (ATMs).

"We plan to have a strong network of at least 500 branches and 500 ATMs across all the major cities and towns in the country in the next three years. The bank currently has a network of 129 branches, eight extension counters and 334 ATMs."

According to Mr Shetty, "The bank has set a target of achieving at least 25 per cent growth for the next three years. We have earmarked an amount of around Rs 100 crore towards information technology initiatives by March 2008."

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rabo India starts merchant banking

Rupee rises further; g-secs see gains

Patni BPO services suite for insurers

i-flex tool for Austrian bank

IDBI open to growth through acquisitions — Focus now on branch, ATM network expansion

Securitisation Act and DRTs — Ministry rules out simultaneous bad debt recovery proceedings

Banks prefer medium-term loans

T-bill auctions fully subscribed

Banks sight treasury gains