Dsp Merrill To Manage Idbi Bank Preference Issue

DSP Merrill Lynch has bagged the IDBI Bank mandate to manage its proposed preferential issue. The bank is looking at a preferrential issue of around Rs 60-100 crore to cut down the stake of its promoters Industrial Development Bank of India (IDBI).

IDBI's stake in the bank is currently at around 57 per cent, which will go down to 40 per cent following the stipulation of the Reserve Bank of India. Sidbi holds another 14 per cent stake in the bank. According to sources, the bank had recently given the mandate to DSP Merrill Lynch to explore the possiblity of placing part of its equity with overseas investors.

The sources said the bank could also look into acquiring another bank over 3-6 months. The bank has already upgraded its technology and invested in new people, new systems and new startegy.

IDBI Bank is also passing an enabling blanket resolution in its annual general meeting to be held on August 11 to raise Rs 60 crore.

It is moving a special resolution to increase its authorised capital from Rs 200 crore to Rs 350 crore.

IDBI Bank had reported a 53 per cent jump in its net profit at Rs 18.22 crore for the first quarter ended June 30, 2001, as against Rs 11.90 crore posted in the corresponding period last fiscal.