The Industrial Development Bank of India has decided to offer 26 per cent stake in IDBI Bank to a strategic partner. A formal decision will be taken at the IDBI board meeting, slated to take place on January 29. The development is significant as it effectively blocks any future move by the IDBI to merge the bank with itself.
IDBI Bank has been resisting the merger move tooth and nail and the entire brass of the bank recently offered to resign protesting the move. However, IDBI has refused to spell out its plans and its chairman PP Vora has so far kept all options (including merger of the bank) open on the way to becoming a universal bank. The board decision to offer 26 per cent bank stake to a strategic partner will signify a policy decision of ruling out the merger possibility.
IDBI