IDBI scouting for buyouts, two banks on radar

After acquiring United Western Bank three years ago, IDBI Bank is at it once again and has identified two domestic lenders as possible targets.

Disclosing this, the public sector bank's Chairman and Managing Director Yogesh Agarwal told reporters here today that talks were on with the two banks.

He did not divulge the identities of the two banks.

IDBI's move is in line with the central government's thinking favouring a consolidation in the Indian banking sector.

Agarwal said IDBI does not need to raise funds for the acquisitions but may look at capital raising to finance its business growth.

Agarwal said the bank has dropped its earlier plan to sell its Pune-based home loan subsidiary, IDBI Home Finance (IHFL).

"It is not on our radar now (sale of IHFL)...It will continue as it is," he said.