``There are a long list of banks, including quite a few south-based banks, who have approached IDBI to consider them as merger candidate with IDBI Bank. These include BoP and Vysya Bank,'' a senior official of IDBI told The Financial Express on conditions of anonymity. It was pointed out that amidst the flurry of bank mergers in the country, IDBI Bank does not want to be left behind.

There is danger of the bank losing market now that rival banks have taken the initiative to grow through the merger route. Among the institution-promoted banks, IDBI Bank is the only that one that has not merged so far. ICICI Bank has over the last two years acquired ITC Classic, Anagram Finance, and Bank of Madura. Others like HDFC Bank merged Times Bank with itself while UTI Bank merged with Global Trust Bank. And with size becoming a critical factor, IDBI Bank has to acquire and grow.

``We are looking for expanding our business, and are open to the idea of acquiring or merge with some banks to this extent. There is a long queue of potential candidates. Other considerations to be kept in mind include the culture of the these banks... The new private-sector banks have a similar work culture as IDBI Bank. But in the case of the older private sector banks, the work-environment is distinctly different,'' a senior IDBI official said.

IDBI Bank is seen expanding its network recently. As of now, it has 52 branches across the country. The bank has formulated an elaborate plan to expand its physical reach to 200 branches within two years. The bank has a paid-up capital of Rs 140 crore. Total deposits stood at Rs 3,973 crore as on September 30, 2000.

Earlier this week, outgoing IDBI chairman G P Gupta told this paper that IDBI will appoint a consultant for formulating the procedure to make it a universal bank.