Stating this at the annual general meeting of the financial institution (FI), chairman S H Khan added that during the first quarter ended June 1,1996, there has been a 19 per cent dip in the sanctions on June 1 to Rs 2618 crore over the same period in the previous year.
However, the disbursements by IDBI have grown by a whopping 56 per cent over the corresponding period last year. The disbursements by IDBI which stood at Rs 1907 crore on June 1 was 56 per cent, higher than recorded during the same period last year, Khan added.
He said that IDBI will be pumping in Rs 40 crore in the next two months into the bank which will enhance the capital base to Rs 140 crore from Rs 100 crore.
We will then issue each IDBI shareholder 100 shares of the bank at par aggregating Rs 40 crore, which essentially will be a divestment by IDBI, Khan said.
This move is being seen as a carrot to shareholders who are still agitated over the price of the IDBI scrip.
The share is still ruling much below the issued price.
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Khan said that the board had already approved the decision and subject to the Reserve Bank of India (RBI) approval the FI is all set go ahead with the private placement to the 4 lakh IDBI shareholders.
He said the public issue of the bank will be after the private placement. Our stake after the public issue should come down to 40 per cent, he added.
In another major announcement, Khan said a major restructuring process is on.
According to him Booz Allen and Hamilton have just finished their study and the process will start from September 1.
The board of directors have recommended a 30 per cent dividend