The Industrial Development Bank of India (IDBI) and IDBI Bank seem to be on a collision path.
The financial institution at its board meeting held on January 29 decided against signing a no-merger covenant with the prospective strategic partner in the bank, thereby blocking any move by the latter to offer a stake to a strategic partner or a private equity participant.
IDBI is willing to offer stakes in the bank to public sector companies like LIC and GIC which are not insisting on the no-merger covenant.
