IDBI Bank to hire 2,000 officers in six months

State-owned IDBI Bank is in the process of recruiting 2,000 supervisory officers in the next six months to support the expansion of its branch network, said Chairman and Managing Director Yogesh Agarwal.

“We have already obtained licence from the Reserve Bank of India to add 200 branches by March 2009. However, the expansion got delayed due to lack of staff. We should be opening the new branches, which will take the total to 700 branches by May this year,” he said.

Speaking to mediapersons on the sidelines of a press conference to launch a new costing software package here on Wednesday, Agarwal said the bank’s total capital adequacy ratio was 12 per cent at present and it was in talks with the government for further fund infusion.

The bank has an exposure of around Rs 250 crore to Maytas Infra and Rs 50 crore to Maytas Properties. Both the firms are owned by Satyam Computer Services founder Ramalinga Raju’s family. Besides, it lent Rs 300 crore to Satyam at a time when the government-appointed board was desperately looking for funds to keep the tainted company afloat.

“Maytas Infra is still a good company and we have no plans to blacklist it. People are unnecessarily panicking and cancelling some contracts. However, the company still continues to be strong and capable enough to execute projects,” Agarwal said, adding they would take a call if the Satyam board approaches the bank for further working capital needs.

Agarwal said the growth rate of the bank’s new housing loans remained stagnant as realty prices were not coming down. “Infra is still doing well while the pharmaceutical sector is quite alright. However, the bank is seeing stress in portfolios like automotive, real estate and textiles,” he said while refusing to divulge further details.