R.M. Malla in Calcutta on Saturday. Picture by Kishor Roy Chowdhury

Calcutta, Sept. 4: IDBI Bank plans to raise $1 billion in foreign currency in the next 12-15 months.

“Recently we raised $350 million. There is a huge appetite for our papers. We intend to raise $1 billion in 12 to 15 months,” R.M. Malla, chairman and managing director of IDBI Bank, said.

Malla said from September 1, the bank had waived all charges related to current and savings accounts.

He said following this move, it was expected that the CASA (current and savings account) deposits would increase to 20 per cent from 15 per cent.

The bank is eyeing a deposit growth of 20 per cent during the current fiscal. Last year, the bank’s business stood at Rs 3.05 lakh crore.

Malla said by the end of the current fiscal, IDBI Bank would merge its 100 per cent subsidiary IDBI Home Finance with itself.

On the bank’s overseas plans, Malla said it had already set up shop in Dubai and is now looking to start operations in Singapore and China. “We are in talks with the representative offices of both the countries,” he said.

The bank is also planning to raise capital from the domestic market in the next few months.

“We can raise capital through a rights issue, qualified institutional placement of shares or placement of preferential shares. We are planning to raise capital in the next 12 to 18 months,” Malla said.

The government has recently approved a capital infusion of over Rs 6,211 crore into five public sector banks.

IDBI Bank has received Rs 3,119 crore of the Rs 6,211 crore allotted. As on March this year, the government’s holding in the bank stood at 52.67 per cent.

The cash infusion will raise the government’s stake to 65 per cent giving the bank enough headroom to raise capital.