IDBI Bank board approves merger with parent
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IDBI Bank board approves merger with parent

Thursday, 29 July 2004, 07:00 Hrs   |    11 Comments
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MUMBAI: The board of the privately managed IDBI Bank, the commercial banking subsidiary of the Industrial Development Bank of India (IDBI), Thursday approved plans for merger with the parent institution.

The proposal would be subject to approval of the shareholders and regulators, the financial institution informed the Bombay Stock Exchange.

The move is part of the government's restructuring plans to infuse new life into IDBI, a development finance institution. Following the merger, IDBI Bank's larger network of branches and its expertise would be available to the parent company.

With its focus on infrastructure funding, IDBI is to get a helping hand from the government to help it turn around.

The development finance institution holds 55.51 percent stake in IDBI Bank, while the other major promoter is Small Industries Development Bank of India with a 13.88 percent stake. The state-owned Life Insurance Corporation of India also holds 6.37 percent stake in IDBI Bank.

Source: IANS
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