IDBI plans to close Intech arm

Industrial Development Bank of India (IDBI) has set up offices in 51 branches of Stock Holding Corporation of India Ltd (SHCIL).

IDBI, being repositioned as a development institution, is also looking at winding up its wholly-owned IT subsidiary IDBI Intech.

This is even as IDBI Home Finance, another 100 per cent subsidiary, is likely to be merged with IDBI by the end of the current fiscal.

IDBI has set up its desks in 51 of SHCIL's branches and in IDBI Home Finance's offices. These offices will help IDBI in mopping up resources for its Flexibond issues and fixed deposits. An officer from the resource mobilisation division has been posted in these offices.

SHCIL has a network of over 100 branches and IDBI is one of its promoters.

IDBI has also trained 150 of its officers. These officers were initially trained at the SBI training college and also at IDBI Bank's training college in Belapur, near Mumbai. They are being given on-site training at IDBI Bank branches. IDBI currently has 36 branches.

The Parliament had in December cleared the IDBI Repeal Bill, enabling the institution's conversion into a universal bank.

Subsequently, finance minister Jaswant Singh while presenting the interim budget earlier this month had said IDBI would play the role of a development finance institution with government support.

The institution had sent in January a revised Memorandum of Association and Articles of Association to the finance ministry for approval. Sources said that the finance ministry's approval for the same has not yet been received.

IDBI Intech made a profit of Rs 0.3 crore as on March 31, 2003. It had around 30 employees and other support staff. IDBI Home Finance, which is likely to be merged into the institution by the end of this fiscal, has 16 offices in 12 cities.