IDBI to review lend rate: Shetty

Bangalore, Apr 7(UNI) IDBI Bank will soon review its lending rate currently pegged around 12.75 per cent Bank Chairman and Managing Director V P Shetty said today.

Speaking after opening of IDBI's new retail branch here today he however siad that the Bank would continue to maintain a low lending rate when compared to competition. During the last two quarters the Bank had not taken the rates northwards, but taking into consideration the increasing trend witnessed in the financial market, the bank would review its rates, he added.

He said that the bank has overshot its target in terms of both Deposit and Advances last fiscal at Rs 42000 crores and Rs 65000 crores respectively.

Rolling out the bank's new plans Mr Shetty said the Bank would foray into Insurance sector with a bang and first policy was expected during June this year. It had targeted a business of over rupees 750 crores within five years. The bank was also awaiting for permission to launch its own mutual fund he said adding that it would be done through a separate entity of the IDBI and would not have any partners.

He said that during 2007 the IDBI has advanced over Rs 15,000 crores towards infrastructure sector which included Power, Road and Transport, Pharma and textiles sectors.

Replying to a question Mr Shetty said that there were 690 NPA accounts and the bank has closed over 150 and recovered over Rs 2000 crores since last three years. The bank was expected to recover another Rs 1000 crores from NPA account this year.

He said that the IDBI has plans to open over 500 new branches in the next five years and also received permission to open its overseas branches at Singapore and Baharin while it would have its representative offices at Moscow, Beijing and Dubai during 2007-08.

"The IDBI will continue to strive in revising, restructuring and extending helping hands to the needy Industries" he said.

UNI