The Board of Directors of IDBI Bank has, in principle, approved the merger of IDBI Home finance, the bank’s wholly-owned subsidiary, with it.

This was announced by IDBI Bank in a release.

Earlier, the annual general body meeting of the bank which met today approved increase in the authorised capital of the bank from Rs 1200 to Rs 2000 crore to enable it to raise additional capital.

The Board accordingly considered and approved preferential issue of 25.95 crore equity shares of Rs ten each at a price of Rs 120.19 per share (comprising of Rs ten/ face value and Rs 110.19 share premium amount) aggregating to Rs 3119.04 crore to the Government of India.

Presiding over the AGM, Bank Chief Managing Director R M Malla highlighted the performance of the Bank during the Financial Year 2009-10, which achieved a Net Profit of Rs 1,031 crore and also crossed business of Rs 3,00,000 crore.

While stressing on the several unique strengths possessed by the bank in terms of Best-in-class IT and Operations platform, excellent customer service, specialized skills in Project Financing, high quality corporate and retail relationships, he also emphasized the importance of relationship-building with customers as key to future growth.

He mentioned that going forward, the Bank would capitalise on its intimate knowledge of Indian economy and its key players to enhance business growth while simultaneously participating in the country's growth process.

UNI