The Telegraph
Since 1st March, 1999
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New branches in IDBI Bank retail thrust

Calcutta, Aug. 17: IDBI Bank has made a fresh application to Reserve Bank of India (RBI) for licences to set up 17 more branches as part of its sharper retail focus.

The bank has set an ambitious target of raising its retail assets by more than Rs 6,000 crore in this financial year. It had surpassed last year’s goal of Rs 3,514 crore.

Also on the cards is a credit card debut, coming after the introduction of debit cards in collaboration with Master and Visa card.

The bank has reorganised its structure in a way that has folded its eastern zone into the west. This has reduced the number of zones — east, west, north and south — and brought in three state heads who will report to the zonal heads. Gautam Gan, who was heading the eastern region, has been transferred to Mumbai. He will preside over eastern and western regions.

Baishakhi Banerjee, state head (Bengal and Ranchi), said: “Retail is the a thrust area. We have identified key products for our focus. We have no plans to enter into car loans, but housing loans, doctors’ loans, traders loans, selling of insurance products, mutual funds and bonds of other companies will be on the menu.”

Loans against mortgage of residential properties are already being offered. “The next thing is loans against mortgage of commercial properties,” said Banerjee.

The bank has introduced preferred banking, which will provide dedicated service to customers with a savings bank account of Rs 1 lakh. There are 1,000 preferred customers in Calcutta and 57,000 nationally.

A revenue target of Rs 150 crore has been set for sale of mutual funds and insurance policies. A tie-up to work as a corporate agent for Birla Sun Life Insurance is in place.

In the first quarter of the current fiscal, the customer assets increased by Rs 900 crore to Rs 5,931 crore. The retail assets crossed the Rs 2,000-crore mark, with 85 per cent of it coming from housing loans.

The bank has filed an application with Sebi to come out with a rights issue of Rs 154 crore in the ratio of 1:2.

Sops for IDBI

The Centre is likely to provide interest subsidy, along with tax sops to IDBI, to enable it to retain development financing even after its conversion into a bank, says PTI.

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