The financial institution (FI), which plans to mobilise close to Rs 10,000 crore this fiscal, has already received permission to raise Rs 3,000 crore through its flexibond issues.

In order to create a secondary market in bonds, the institution is talking to some parties within the country for market making, chairman and managing director GP Gupta told reporters on Monday while launching the first flexibond issue of this fiscal.

Having suffered through its exposure to the steel sector, Gupta said they did not intend to take further exposures in greenfield steel ventures.

Incidentally, IDBI, along with other institutions, is waiting for the steel companies to comply with certain stipulations before further disbursements can take place.

Only two companies--Jindal Steel and JK Steel Corporation--have so far fulfilled the requirements. IDBI executive director TMNagarajan said they had already started disbursements to the companies.

On the issue of Essar Steel and its $250-million floating rate note (FRN), Gupta said they had given the company ample time to request the bondholders for a roll-over and conveyed the stand taken by FIs that they will not finance any corporate's liabilities.

Gupta said IDBI was expecting its sanctions and disbursements to grow by 10 to 12 per cent during the year. The bank will declare its first quarter results for the year on July 30.

In the current year, the bank was not planning to access any foreign currency funds as last year a large part of its foreign currency denominated funds were unutilised due to lack of demand from the corporate sector, he said.

The bank is also looking at going in for interest rate swaps on rupee finances and forward rate agreements.

Nagarajan said cross border financing was being looked at closely as a means of funds utilisation, but said that a lot of technicalities had to be ironed outfirst.

While the buoyant trend in the economy--particularly steel, cement and textiles--is expected to reduce the institutions non-performing assets (NPAs), Gupta said they had formed a special committee which would be closely monitoring companies in which it has substantial exposure.

Gupta ruled out the necessity for his institution having to raise capital through Global Depository Receipts (GDRs) or American Depository Receipts (ADRs) on the lines of those announced by ICICI Ltd saying that their capital adequacy was better than that of icici, whose capital mainly consisted of tier-II capital.

The bank would maintain its focus on infrastructure lending for the current year too with particular focus on info tech, agro and food processing and pharma, Gupta said.