20151105

Will IDBI Bank merge with a private lender?

IDBI Bank may be Merged with Private Lender – It is expected that the government will soon set up a high-level committee headed by the cabinet secretary that will oversee strategic divestments, including the IDBI stake sale.

The government has hired SBI Capital Markets to draw up plans for the sale of a strategic stake in IDBI Bank and is open to a range of options including merger with a non-state lender and preferential allotments to institutions of sound financial standing.

Other proposals that have emerged in early talks include a follow on public offer and sale to institutional investors through the open market, said persons with knowledge of the two rounds of discussions that have already been held. A merger would face the minimum regulatory hurdle.

This will only need the Reserve Bank of India’s permission, the person said. The government currently owns 76.5% of IDBI Bank. IDBI Bank is governed by the IDBI Act and the government can lower its stake without having to approach Parliament. That’s in contrast with the position at other state-run banks, where the government has committed to retain a 52% holding at least.

It is expected that the government will soon set up a high-level committee headed by the cabinet secretary that will oversee strategic divestments, including the IDBI stake sale. The investment banking arm of the country’s largest bank will work on valuation, different divestment models and how to sell overseas assets and liabilities.

A senior government official told that the idea is to identify the core assets of the bank and the regulatory steps that may be required to bring down the government’s stake. How much it will sell hasn’t been decided yet. “There is no cap that we have thought of as of now on equity dilution. We will identify all the alternatives and then proceed for relevant regulatory approvals,” said one of the two persons cited above. Based on Wednesday’s closing price of Rs 84.8 a share, IDBI Bank’s market value amounts to Rs 13,600 crore.

Possible merger partners could include entities that have recently got approval to set up small banks. “This can turn out to be an opportunity for them to get into the league of larger banks,” said one of the officials citedabove. The valuation methodology will be made transparent to protect the process from legal challenge.

“In the past we have seen that any strategic disinvestment has led to lot of issues mostly on valuations. We do not want that in this case,” said the first official cited above. IDBI Bank said on Wednesday that September quarter net profit remained almost flat at Rs 119.5 crore compared with Rs 118.49 crore in the year earlier. Net non-performing assets (NPAs) widened to 3.16% from 2.79% of loans in the year-ago period.

Last month, minister of state for finance Jayant Sinha had said that the government was considering transforming IDBI Bank in a manner similar to that of Axis Bank, formerly UTI Bank. The government is looking to raise a record Rs 69,500 crore from asset sales this year.

Source: IIFL

No comments:

 

PUBLIC SECTOR BANK

S.n. Public Sector Banks Web Site
N.
1 Allahabad Bank ................... http://www.allahabadbank.com/
2 Andhra Bank ............................. www.andhrabank-india.com/
3 Bank of Baroda ..................... http://www.bankofbaroda.com/
4 Bank of India ............................ http://www.bankofindia.com/
5 Bank of Maharashtra ................ www.maharashtrabank.com/
6 Canara Bank .......................... http://www.canbankindia.com/
7 Central Bank of India .............. www.centralbankofindia.co.in/
8 Corporation Bank ........................ http://www.corpbank.com/
9 Dena Bank ................................... http://www.denabank.com/
10 Indian Bank .......................... http://www.indian-bank.com/
11 Indian Overseas Bank .......................... http://www.iob.com/
12 Industrial Developmen BANK (IDBI) ........... www.idbi.com/
13 Oriental Bank of India ................ http://www.obcindia.com/
14 Punjab & Sind Bank .................... http://www.psbindia.com/
15 Punjab National Bank ................ http://www.pnbindia.com/
16 State Bank of India ................... www.statebankofindia.com/
17 Syndicate Bank ................. http://www.syndicatebank.com/
18 UCO Bank .................................... http://www.ucobank.com/
19 Union Bank of India ................. www.unionbankofindia.com/
20 United Bank of India .............. www.unitedbankofindia.com/
21 Vijaya Bank .......................................... www.vijayabank.com/


Associate Banks of SBI

S.N Associate Banks of SBI Web Site
1 State Bank of Bikaner & Jaipur .............. www.sbbjbank.com/
2 State Bank of Hyderabad ................. http://www.sbhyd.com/
3 State Bank of Indore ............................. www.indorebank.org/
4 State Bank of Mysore ........................ www.mysorebank.com/
5 State Bank of Patiala ............................ http://www.sbp.co.in/
6 State Bank of Saurashtra ............. http://www.sbsbank.com/
7 State Bank of Travancore www.statebankoftravancore.com/

Private Sector Banks

S.No Private Sector Banks Web Site
1 AXIS Bank Ltd. ........................... http://www.axisbank.com/
2 Centurion Bank of Punjab Ltd ........ www.centurionbop.co.in/
3 City Union Bank Ltd. ......... http://www.cityunionbank.com/
4 Coastal Local Area Bank Ltd. ..... www.coastalareabank.com/
5 Cpital Local Area Bank Ltd ............... www.capitalbank.co.in/
6 Development Credit Bank Ltd. ......... http://www.dcbl.com/
7 ICICI Bank Limited ..................... http://www.icicibank.com/
8 IndusInd Bank Limited................ http://www.indusind.com/
9 ING Vysya Bank Ltd. ...................... www.ingvysyabank.com/
10 Karnataka Bank Ltd. ............. http://www.ktkbankltd.com/
11 Kotak Mahindra Bank Ltd .............. http://www.kotak.com/
12 Krishna Bhima Samruddhi Local Area Bank Ltd
13 SBI Commercial and International Bank Ltd .............. www.sbici.com/
14 Tamilnad Mercantile Bank Ltd ............ http://www.tmb.in/
15 The Bank of Rajasthan Ltd ....... www.bankofrajasthan.com/
16 The Dhanalakshmi Bank Limited. ...... www.dhanbank.com/
17 The Federal Bank Ltd. ....... http://www.federal-bank.com/
18 The HDFC Bank Ltd. ................ http://www.hdfcbank.com/
19 The Jammu & Kashmir Bank Ltd. ..................... http://www.jammuandkashmirbank.com/
20 The Karur Vysya Bank Ltd. ............ http://www.kvb.co.in/
21 The Lakshmi Vilas Bank Ltd. ....... http://www.lvbank.com/
22 The Nainital Bank Ltd.
23 The Ratnakar Bank Ltd. ......... www.theratnakarbank.com/
24 The South Indian Bank Ltd. .... www.southindianbank.com/
25 Yes Bank Limited ....................... http://www.yesbank.co.in/

Foreign Banks

S.N. Foreign Banks Web Site
1 AB Bank Limited ..............................http://www.abbank.org/
2 ABN AMRO Bank N.V. .................. www.abnamroindia.com/
3 Abu Dhabi Commercial Bank Ltd. ...... www.adcbindia.com/
4 Bank Internasional Indonesia ............... www.biimum.com/
5 Bank of America N.A. ................. www.bankofamerica.com/
6 Bank of Bahrain & Kuwait BSC .......... www.bbkonline.com/
7 Barclays Bank Plc ......................... http://www.barcap.com/
8 BNP PARIBAS ..................... http://www.bnpparibas.co.in/
9 Calyon Bank ......................... http://www.ca-indosuez.com/
10 Citibank N.A. ............................ http://www.citibank.co.in/
11 Deutsche Bank AG .............................. http://www.db.com/
12 J P Morgan Chase Bank, National Association ..... www.jpmorgan.com/
13 Krung Thai Bank Public Company Limited
14 Mashreqbank psc .............. http://www.mashreqbank.com/
15 Mizuho Corporate Bank Ltd
16 Oman International Bank S A O G ...... www.oiboman.com/
17 Societe Generale ............................... http://www.sgcib.com/
18 Societe Generale .............................. http://www.sgcib.com/
19 Sonali Bank Ltd. .......................
20 Standard Chartered Bank .... www.standardchartered.com/
21 State Bank of Mauritius Ltd. .. http://www.sbmonline.com/
22 The Bank of Nova Scotia ........ http://www.scotiabank.com/
23 . The Bank of Tokyo-Mitsubishi, Ltd
.24 The Development Bank of Singapore Ltd. (DBS Bank Ltd.) ............................................... http://www.dbs.com/
25 The Hongkong & Shanghai Banking Corporation Ltd.......... http://www.hsbc.co.in/ ·

Co-operative Banks

S.N. Co-operative Banks Web Site
1 Abhyudaya Co-op. Bank Ltd.
2 ACE Co-operative Bank Ltd.
3 Am anath Co-op. Bank Ltd. ........ www.amanath-bank.com
4 Apna Sahakari Bank Ltd ......... www.apnabankltd.com
5 Bassein Catholic Co-op. Bank Ltd.
6 Bombay Mercantile Co-op. Bank Ltd.
7 CITIZENCREDIT Co-op. Bank Ltd. .. www.citizencreditbank.com
8 Dombivli Nagari Sahakari Bank Ltd. .. www.dnsb.co.in
9 Jalgaon Janata Sahakari Bank Ltd.
10 Janakalyan Sahakari Bank Ltd . www.janakalyanbank.com
11 Janalaxmi Co-op Bank Ltd.
12 Janata Sahakari Bank Ltd. .. www.janatabankpune.com
13 Mahesh Sahakari Bank Ltd., Pune
14 Nagpur Nagarik Sahakari Bank Ltd.
15 New India Co-op. Bank Ltd. .. www.newindiacobank.com
16 Nutan Nagarik Sahakari Bank Ltd.
17 Punjab & Maharashtra Co-op. Bank Ltd.www.pmcbank.com
18 Rajkot Nagarik Sahakari Bank Ltd. www.rnsbindia.com
19 Rupee Co-op. Bank Ltd. .. www.rupeebank.com
20 The A.P. Mahesh Co-op. Urban Bank Ltd. .......www.maheshbank.org
21 The Bharat Co-op. Bank (Mumbai) Ltd.
22 The Cosmos Co-op. Bank Ltd. ... www.cosmosbank.com
23 The Deccan Merchants Co-op. Bank Ltd.
24 The Greater Bombay Co-op. Bank Ltd. .......www.greaterbank.com
25 The Gujarat Industrial Co-op. Bank Ltd.
26 The Jalgaon Peoples Co-op. Bank Ltd.
27 The Kalupur Commercial Co-op. Bank Limited .....www.kalupurbank.com
28 The Kapol Co-op. Bank Ltd. .. www.kapolbank.com
29 The Karad Urban Co-op. Bank Ltd. .......... www.karadurbanbank.com
30 The Mahanagar Co-op. Bank Ltd. .. ..... www.mahanagarbank.com
31 The Municipal Co-op. Bank Ltd
32 The North Kanara GSB Co-op. Bank Ltd. ........www.nkgsbank.com
33 The Saraswat Co-op. Bank Ltd. . www. saraswatbank.com
34 The Shamrao Vithal Co-op. Bank Ltd. .........www.svcbank.com
35 The Surat Peoples Co-op. Bank Ltd. www.spcbl.com
36 The Thane Janata Sahakari Bank Ltd. ......www.thanejanata.co.in
37 The Urban Co-op. Bank Ltd.
38 The Zoroastrian Co-operative Bank Ltd ........ www.zoroastrianbank.com