Following SBI?s recent announcement of issuing employee stock options (Esops), private bank IDBI has similar plans on the anvil. The move comes after recommendations made by consultants Cerebus, the bank is also planning to repackage the salary structure of its employees.
Yogesh Agarwal, CMD, IDBI , said that the bank was also serious about inorganic growth in the near future as it aspires to become the 5th largest bank by 2012.
On plans of raising capital, Agarwal said currently the bank?s capital adequacy ratio (CAR) was 14% and hence would not raise money during 2007-08.
?But we have got enough headroom for the same, and hence we may go for it through a rights issue during the next financial year,? he said.
The bank was also looking at adding 200 branches and 300 ATMs and having an international presence at locations like Singapore, Dubai, London and Shanghai. Based on a report submitted by McKinsey, the bank is planning to restructure its organisational structure.
As the bank has already received approval from the Insurance Regulatory & Development Authority (Irda) to launch life insurance products in a joint venture with Fortis and Federal Bank, Agarwal said, ?We will launch two products by the first week of Februrary.? The formation of an asset management company is also on the bank?s agenda.
The bank?s net interest margin (NIM) target for 2007-08 has been projected at 1.5%.