IDBI Bank today said it has filed for $1.5 billion (6.82 lakh crore) through a medium-term note (MTN) programme, but would raise $230-300 million (Rs 1,680 crore) now depending on market conditions.
Chairman, Yogesh Agarwal said the bank will review lending rates in the first week of April. “We will not wait for the policy meeting in April. We will take a review of our lending rates in the first week. Lending rates have already been going up in the corporate and retail sector.”
The bank had filed for a private equity fund with RBI but has not got permission yet. It has shelved the plan to sell the home finance subsidiary, IDBI Home Finance owing to valuation issues. “We are looking at various options — whether to sell it or transfer the portfolio to our main balance sheet or merge it with ourself,” said Agarwal.
The public sector lender said that it will need Rs 8,000 crore in next three years to expand its credit base.
“We will come out with a rights issue or follow on offering as soon as Government gives the money. We will end 2009-10 with a credit growth of 25 per cent and hope to achieve 20 per cent credit growth in 2010-11,” he added.