"We are open to acquiring an Indian bank," IDBI Bank chairman MS Verma told reporters on the sidelines of a seminar when asked whether it would follow in the footsteps of its nearest rivals, ICICI Bank and HDFC Bank.

The former State Bank chairman did not elaborate but indications are that the bank was keen on a new generation private bank which would match the technology and workforce of IDBI Bank.

The move comes at the outset of a consolidation that is taking place in the banking sector with HDFC Bank acquiring Times Bank and ICICI Bank linking pact with the Bank of Madura in the recent past.

The option to acquire another bank would be part of IDBI Bank's organic growth plans. "We have plans to extend our branch network to all major 60 cities from the present 37 cities," Mr Verma said.

In order to comply with the Reserve Bank of India (RBI) directive of bringing down promoters' stake in private banks, he said, "we are considering the best possible opportunities." There could be two possibilities - offloading 20 per cent to 25 per cent to a strategic investor, or tapping the market through a public offer.

"The strategic investor could be a foreign bank," Mr Verma said when asked about the potential partner the bank was looking for. The IDBI Bank chairman did not elaborate on the timing of the initial public offering (IPO).

Mr Verma said the bank was currently increasing its E-initiatives by launching mobile banking in major metros, including New Delhi.

"The mobile banking facilities would be extended to 10 cities shortly," he said.

(PTI)