Udbi plans to open Overseas branches

Udupi, Apr 24 (UNI) The Industrial Development Bank of India (IDBI) lans to open overseas branches at Singapore and Bahrain, Bank Chairman and Managing Director V P Shetty announced here today.

Talking to newsmen after the inauguration of the first full fledged branch in the temple city here, he said IDBI would secure the licence from RBI for opening the branches within the next four months.

Mr Shetty said the Bank aimed to enhance its branch network from the present 171 branches to 500 by March 2008. It had also signed a Memorandum of Understanding(MoU) in March this year with Fortis Insurance International. a Major Insurance player in Europe.

To set up a life insurance joint venture, a third party would be jointly identified within the next fortnight before approaching the regulator for obtaining necessary approvals, he said.

The CMD said that though the bank had become a public sector unit, it would continue to support the Industrial sector besides thrust being given to agriculture sector.

Following the focus on retail banking IDBI's retail assets surged by over Rs 2820 crore during financial year 2006 to nearly Rs 8520 crore, retail assets now constituted over 16 per cent of total advances as against 12.5 per cent of March end 2005, he said.

Mr Shetty said that during the financial 2005-06, the bank made a net profit of Rs 561 crore with an operating profit of Rs 801 crore. The total business was by 30 per cent to reach Rs 78518 crore which the net Non Performing Assets (NPA) had come down to 1.01 per cent from 1.7 per cent. The deposits of the bank during 2005-06 had increased by 72 per cent which its total advances was up by 16 per cent, he added.

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