Mumbai, March 22 :    Mumbai, March 22:  The Industrial Development Bank of India (IDBI) is looking to convert itself into a bank by 2003. This was indicated by chairman P.P. Vora in a recent meeting with the institution's employees. At the meeting, Vora is understood to have revealed that IDBI is looking for a merger with a nationalised bank which has a large statutory liquidity ratio (SLR) exposure, as it could partly take care of its resource raising requirements. Sources said as per preliminary estimates, the leading term-lending institution may have to raise close to Rs 40,000 crore to maintain the cash reserve ratio (CRR) and SLR requirements if it were to convert into a bank. 'IDBI is therefore looking at banks that have a good resource base apart from a large SLR exposure among various other factors,' they added. The institution, the officials said, is likely to make serious effort towards universal banking after the Centre takes firm steps towards repealing the IDBI Act, 1964. 'As the process is expected to take some time, the institution believes that conversion into a universal bank will only happen by 2003,' they added. It may be recalled that in the Union budget, finance minister Yashwant Sinha had paved the way of IDBI's conversion into a universal bank by proposing to repeal the IDBI Act, which currently prevents it from undertaking banking activity. The move is also expected to give more flexibility to IDBI in terms of operations. While IDBI is learnt to be targeting an unlisted public sector bank, industry circles believe that Union Bank of India and Canara Bank are among the few that could figure in its list. Though news about the institution targeting Delhi-based Punjab National Bank also did the rounds, this has now been virtually ruled out. Yet another possibility that has been scuttled relates to a reverse merger with IDBI Bank, its subsidiary. The movement towards universal banking was formally inked within IDBI in October last year when its board approved such a proposal.