Industrial Development Bank of India (IDBI) which had initiated a due-diligence exercise at Industrial Investment Bank of India (IIBI) has concluded the exercise and would initiate talks for a takeover after deciding on the issue. | |
| "We are scheduled to meet Industrial Development Bank of India chairman M Damodaran in the next one and half month to discuss the issue," explained O N Singh, chairman and managing director, IIBI. |
| |
| "We will discuss about the takeover and issues relating to the merger in the meeting. We are, however, yet to receive any official information from IDBI on their intention of taking it over," he added. |
| |
| Sources close to the development said that Industrial Development Bank of India was yet to decide on taking over IIBI. Negotiations would begin only after a formal decision is taken. |
| |
| IIBI had some time back resorted to financial re-engineering after which its non-performing asset level fell to around 17.5 per cent from 35 per cent. |
| |
| But NPAs thereafter bounced back to 30 per cent some years ago. IIBI's paid-up share capital was Rs 467.28 crore, with Rs 72.75 crore as equity and balance Rs 394.53 crore as preference capital. |
| |
| IIBI non-performing assets were around Rs 600 crore and accumulated losses approximately Rs 500 crore. If the accumulated losses and non-performing assets were written off, IIBI could be a good takeover candidate. |
| |
| Sources said IDBI was likely to request the government to write off its bad assets and losses. This would make it easier for IDBI to take it over. |
| |
|
| |
