Indian Bank for taking over domestic bank

Chennai-based Indian Bank has indicated that it will acquire a domestic bank by the end of this fiscal.

Indian Bank chairman M B N Rao speaking on the sidelines of the conference said that Indian Bank was presently evaluating acquisition targets.

While indicating that the potential target will be a domestic bank, he refused to spell out if it will be a weak or a smaller bank. He only said, "We are examining the issue. The acquisition should happen in the shorter horizon rather than the longer horizon."

Incidentally the move clearly reveals the dramatic turnaround the scam-tainted bank has crafted. Barely two years ago, Indian bank was bailed out from the critical list by the Finance Ministry through a Rs 1,300 crore capital infusion.

However, after that, the bank has gained in strength steadily upping its performance. Last fiscal it reported a net profit of Rs 405.75 crore against Rs 188.83 crore, the previous year.

Further, the bank is also on course for an initial public offering this financial year. As of March 2004 the bank had a capital base of Rs 4,564 crore.