Public sector lender IDBI Bank Ltd is in talks to buy a bank and expects to complete the acquisition in FY10, reports DNA. IDBI is looking for a bank which can provide more retail strength and fit into IDBI in terms of technical and staff skills, said its chairman and MD Yogesh
The bank is looking to expand its retail presence and branch network and has also set funds aside for acquisition. The bank is currently the eighth largest and plans to be fifth largest by 2012 by using both organic and inorganic route.
The bank is on an expansion spree and recently got a licence from Reserve Bank of India to open 200 branches. It presently has 500 branches.
The bank will also finalise the sale of IDBI Home Finance to Dewan Housing Finance when it gets the government approval. The Wadhawan group promoted company has offered to buy IDBI’s home finance arm for Rs 325 crore.
IDBI Bank has been formed after merger of three units – IDBI, IDBI Bank and United Western Bank of Satara.