IDBI Bank Ltd is likely to raise around Rs 300 crore of tier II debt during the current financial year, according to chairman & managing director Yogesh Agarwal.
However, the bank has no plans to dilute the equity base further as it has a comfortable capital adequacy ratio of more than 14%, Agarwal told reporters after addressing the Banking Conclave organised by the Federation of Indian Chambers of Commerce & Industry here Thursday.
After its merger with the United Western Bank, IDBI has been saddled with several branches, some of them close to each other, forcing the bank to look at rationalisation of its branch network.
“There is a need to rationalise our branch network. We will not reduce the number, which stands at 450, but will merge some and shift a few,” Agarwal said.
Meanwhile, the bank has applied to the Insurance Regulatory & Development Authority to get approval for its joint life insurance venture.
In November last year, IDBI Bank, Federal Bank and Fortis Insurance International had entered into a joint venture to establish a new life insurance company.
Under the agreement, IDBI will own 48% equity, while Fortis and Federal Bank will own 26% each.
