Mumbai, Aug 21: IDBI Bank is looking to compete with parent IDBI, after the financial institution’s conversion into a bank. The bank’s CEO-designate Ajay Bhimbet terms the relationship with IDBI as “co-optition” (an amalgam of co-operation and competition). “My own perspective is that we are performing reasonably well. The challenge is to keep the growth engine alive,” said Bhimbet.

The bank’s board cleared Bhimbet’s appointment on Wednesday. Bhimbet assumes charge from Friday. The present incumbent Gunit Chadha’s term comes to an end on Thursday. Chadha is moving to Deutsche Bank as chief country officer. Bhimbet will hold additional charge of head of retail banking, his current position.
The RBI was clear about the bank not becoming headless, after Chadha left. Hence, IDBI which was looking around for a CEO, but had to settle for an candidate from within the bank, to fall in line with RBI’s directives.

The bank is due to come out with a rights issue in the ratio of 1:2 (one share for every two shares held). The equity issue will allow the bank to raise Rs 154 crore. IDBI and Sidbi have already agreed to participate in the rights issue. Bureau Report