Mumbai, Oct. 27 :    Mumbai, Oct. 27:  The Industrial Development Bank of India (IDBI) has zeroed in upon the option of reverse merger with either a public or private sector bank to convert itself into a universal bank. This option-which could even be its subsidiary IDBI Bank-has been preferred over other choices that include direct conversion into a universal bank and a deferred merger. A proposal specifying its plan for transition into a universal bank will be placed with the Reserve Bank of India (RBI) before October 31. The IDBI board which met here today agreed in principle to 'the proposal for organisational/business restructuring of IDBI into a universal bank'. Later talking to reporters, IDBI chairman P.P. Vora said that during its interaction with RBI, the institutions is not going to spell out the 'name' of the intended organisation with whom a reverse merger will be sought. Vora revealed that the institution will finalise the particular bank within six weeks. In the event of a reverse merger option being pursued, the IDBI Act will have to be extensively amended or repealed for which a separate proposal to the Union government would be placed. The IDBI chief said that among the various options, direct conversion into a universal bank was 'least preferred' as the institution would require a strong retail approach that encompasses a good branch network and also a large deposit base. 'We examined all the options and thought that direct conversion is the least preferred option,' he said. Explaining the deferred merger route which could take around three years, he said the institution will have to first take a stake in a bank and within two to three years transfer some or all of its non-performing assets (NPAs) to a special purpose vehicle or an asset reconstruction company. After the entire process is over, the merger could be consummated. Vora said preference will be given to that model which will 'minimise the regulatory concessions and government funding requirement and ensure that there is least transititional pain in transformation from DFI to a universal bank.' When asked about the timing aspect, Vora pointed out that it could be March 31 next year at the earliest. Incidentally, the 'preferred' option of reverse merger comes only few days after the IDBI chief had ruled out the possibility of merger with IDBI Bank. Vora however, parried questions on this issue.