Calcutta, Feb. 28: Industrial Investment Bank of India (IIBI) has found three suitors in Calcutta. Uco, UBI and Allahabad Bank are exploring possibilities of taking over the city-based financial institution, said Madhukar, IIBI chairman and CMD of United Bank.

Allahabad Bank is being touted as the frontrunner in the race for IIBI by banking industry sources. However, Madhukar refused to name any bank.

Madhukar, who is retiring both from IIBI and UBI on February 29, said: “IIBI’s financial health has improved a lot. A bank with plans to expand in the east and Northeast can benefit from the buyout. Any commercial bank from Calcutta can take over IIBI.”

. . Singh, chairman and managing director of Allahabad Bank, will take charge as chairman of IIBI from March 1. In the interim budget for 2004-05, finance minister Jaswant Singh had given a financial assistance of Rs 143 crore to IIBI.

Madhukar said IIBI has been able to recover non-performing assets worth Rs 53 crore in the last 8-10 months. “It has earned Rs 8 crore through judicious deployment of funds and managed to meet the salary cost of Rs 6 crore from this interest income.”

“IIBI will not be a losing proposition if someone takes it over now,” Madhukar added.

UBI launches debit card

United Bank today launched a debit card in partnership with Visa. The debit card is ideal for everyday payment needs of customers, making it a bank account in his wallet. Madhukar said: “The debit card is another step in our endeavour to provide customers with technology-enabled products. This would link the UBI network with other payment gateways and will provide much better and faster service.”