Idbi Rules Out Reverse Merger With Idbi Bank

The Industrial Development Bank of India (IDBI) has ruled out a reverse merger with IDBI Bank or transforming itself into a commercial bank in its move towards converting itself into a universal one.

The institution has said that instead it would look to a deposit base of over Rs 40,000 crore by taking over either a large public sector bank or two smaller ones. However, no banks have been identified so far.

At a meeting with finance minister Yashwant Sinha here today, the institution is learnt to have said that a reverse merger was unviable as IDBI Bank was too small to serve any purpose.

Finance secretary Ajit Kumar had earlier asked the three financial institutions