IDBI Bank board meets today to discuss capital raising

The bank has been in discussion with the government on the capital infusion plan

Reeling under huge losses, public sector lender IDBI Bank’s board is meeting on Tuesday in Delhi to consider capital-raising plans, especially from the government, to meet regulatory norms by March 2017.

The government has maintained that the bank is in line for strategic divestment, in which the institutional investor will infuse fresh capital.

The International Finance Corporation and another multilateral agency had done the due diligence on the bank’s books but things have not moved ahead.

Top executives of the bank said it had made huge losses in 2015-16 and this year was also going to be tough. So there is little or