Mumbai, March 4: Industrial Development Bank of India Ltd (IDBI) will look at acquiring a sound bank with a pan-India presence to compete with international giants, according to its new chairman, V. P. Shetty.

Shetty said the entity would look at organic growth as well as through acquisitions.

Acknowledging that consolidation in the sector is a way to stand up to tough competition, Shetty said to grow inorganically, IDBI will look at acquiring a sound bank with a good domestic branch network and an international base.

He said with the consolidation in the domestic banking industry, it was sheer size and strength that were critical to compete with international majors.

Referring to competitive times ahead, Shetty said the situation would be tougher and there was no guarantee of smooth sailing.

While the growth rate of 17-20 per cent for the topline was not sufficient, the bank would have to grow at a higher pace.

?With development financing and private sector investments, IDBI should find viable projects,? he added.

Shetty told the employees that they should work to regain the past glory.

Shetty was appointed as chairman of IDBI Ltd earlier this month.

He will be at the helm of the company till June 2007 when he attains superannuation.

He was earlier the chairman and managing director of Canara Bank.

IDBI is now in the midst of merging its retail banking subsidiary IDBI Bank with itself.

The entire process is expected to be completed by the end of the current financial year.