IDBI Bank appoints DSP Merrill Lynch
By Our Banking Bureau | 16 Apr 2002
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New Delhi: IDBI Bank has appointed DSP Merrill Lynch for finalising the sale of 26-per cent stake in the next few months. This is part of the bank's plans to garner Rs 300-400 crore and bring down IDBI's stake to around 40 per cent, in line with the Reserve Bank of India's new stipulations.
According to IDBI Bank chairman M S Verma the bank plans to increase its business by about Rs 3,000 crore in 2002-03. “The bank is mainly looking for financial partners and not other banks. We are not looking for strategic partners as we are not interested in parting with the management control at present.“
“DSP Merrill Lynch will carry out the valuation of the shares that will be offered at a premium to the partners,“ says IDBI Bank CEO and managing director Gunit Chadha. As a result of this, IDBI's stake will come down to 42 per cent. The bank has a capital of Rs 140 crore and reserves of Rs 128 crore.
