Idbi Universal Banking Panel Set

The Industrial Development Bank of India (IDBI) has set up an internal committee to suggest measures that the organisation should adopt to shift towards universal banking.

The board of the institution had taken an in-principle decision to move towards universal banking during the end of January this year.

The committee includes five chief general managers of IDBI _ Jitendra Balakrishnan, corporate finance, O V Bundellu, resources, K K Rao, research, G M Ramamurthy, legal, and S Gajendran, personnel.

It will report to the standing committee of the IDBI, which includes G P Gupta, chairman of the institution, and deputy managing director S K Chakraborty, S K Gupta, D Basu and A Besant C Raj.

 

"The group will take off from the recommendations made by Athreya committee which was appointed by IDBI on universal banking," said sources.

At the same time, it has also been decided that the institution should appoint an external consultant to suggest to the institution the roadmap to universal banking.

The rationale for appointing the committee was arrive at the approach the IDBI should take.

The group will consider pros and cons on various approaches towards universal banking. Whether the FI should opt for buying out a bank or take stake in some bank and later on merge, or opt for an strategic alliance and then consider a taking a stake to merge.

Besides this it would also consider options like merging with its own subsidiary IDBI Bank or should it offer all products under its own roof.

Sources said that the organisation had decided to position itself as universal bank a year ago in May 1999 following the recommendation of an in-house panel.

This was followed by appointment of Athreya Committee to advise the institution on the approach to universal banking.