The new business avenues will also see an expansion in the branch network of the bank by eight new branches this year. The new branches will be located in Vizag, Bhubaneshwar, Bhopal, Mumbai, Kerala and Ludhiana.

Confirming the development, IDBI Bank vice-president (operations) IC Augusti told The Financial Express: "The board has approved the plan to launch certain retail products. Commercial banks are required to make innovations according to the market demands. Focussing solely on corporate financing was putting pressure on the margins. We think this is the best time to launch housing loans when the interst rates are low and the customer base is rising."

The IDBI bank will set up a committee--consisting of department heads--to ascertaincredit-worthiness of housing loan proposals. There will also be a monitoring committee to decentralise the banking operations, sources said. The monitoring committee will assess the loan proposals and oversee the disburals and repayments of the retail finance window. The housing loans will be available to the IDBI Bank's client base of 72,000 borrowers.

The bank will lend a maximum amount of Rs 20,000 against shares while the financing details for housing finance is yet to be decided by the board. After the retail products are ready, the bank will send mailers to all its clients.

IDBI Bank already has a small exposure in retail finances with a tieup with American Express Bank to market some of its retail products like auto loans and consumer durable loans. Under the arrangement, IDBI Bank will leverage on the Amex expertise while utilising its network which would be a source of additional income to the banks.

IDBI Bank is also set to hit the market with products like Internet banking and smart cards.Plans are also afoot to instal a number of off-site ATMS across the country during the current year.