IDBI Eyes Rs 2 Lakh Crore business in 5 years

Mumbai, June 22 (UNI) Industrial Development Bank of India (IDBI) has plans to double its balance sheet to Rs Two Lakh Crores within the next five years, IDBI Chairman V.P Shetty said today.

Talking to reporters after the bank's Annual General Meeting (AGM), Shetty said with the proposed USD 1.5 Billion capital raising programme, which will be made from the issue of medium term notes, the Bank plans to accomplish an excess 20 percent Compounded Annual Growth rate (CAGR).

''The Industry has been performing well and there is enough liquidity in market. These factors may bring down the Interst rates in short term.'', Shetty said.

In a communique to bourses, the bank had also announced the appointment of Yogesh Agarwal, at present Managing Director, SBI as the new Chairman of the Company. Mr. Agarwal will hold the office til June 30, 2010.

The capital, raised from bonds in different tranches as perpetual Tier 1 and Tier 2 capital, will be put in for bank's future expansion and acquisition purposes.

The bank had earlier received the RBI clearance to raise funds by issuing bonds. The bank had fixed HSBC and Barclays as the lead arrangers to the issue.

The bank had recently launched IDBI Gilts, a wholly owned subsidiary, with a view to gain a bigger hand in core and non core business activities including government securities, bond market, underwriting and fixed income securities, equity trading and mutual funds.

UNI