Public sector IDBI Bank will be raising foreign loans of up to $3 billion in the next one year through multiple sources, a top bank official said.
"In the next 12 months, we will raise $2-3 billion through foreign currency loans through multiple sources," Chairman and Managing Director R M Malla today reporters on the sidelines of the bank's foundation day function here today.
IDBI Bank has a headroom to raise around $600 million under its mark-to-market (MTM) programme and the $2-3 billion is apart from the programme, Malla said.
The bank will be using multiple sources like line of credit, bonds and loans to raise the money, he added.
Interest margins are slated to go up on the back of growth in the cheaper CASA (current and savings account) deposits to 20 per cent by end-this fiscal from the current 15 per cent.
"The number of savings accounts has gone up by 3.5 times, since we introduced the zero fees scheme last month," Malla said, announcing newer schemes to attract more accounts.
In a first for savings accounts, the bank has decided to give overdraft facility to salary accounts under which they will be charged an interest lower than that on credit cards.
Ahead of the festive season, the bank also announced an uniform 0.50 per cent cut in the interest on auto loans, which are currently disbursed at between 9.25-10.50 per cent range.
Speaking to reporters, Malla clarified that though there was an upward revision in its base rate yesterday, the bank did not plan to raise the rates for home loans.
On the assets value-unlocking front, Malla said IDBI Bank was ready to sell its five per cent stake in the National Stock Exchange (NSE) if it got a fair valuation.
The bank will be happy if ratings agency CARE in which it owns a stake, goes public at an "appropriate time", he said.
IDBI Bank also entered into an exclusive understanding with the Small Industries Development Bank of India (SIDBI) for lending to the medium and small enterprises (MSME) sector today.
Under the agreement they will jointly work, with a target to disburse Rs 7,000 crore in the first year. "Our staff will jointly go out seeking loans, work from the same office and present a common package to customers with minimal paperwork," Malla said.
SIDBI will focus on the term loans aspect while IDBI will handle the working capital part and giving banking services for clients like providing cheque books, he said.
The bank also inaugurated 31 new branches today spread across ten states in the country.
