The Industrial Development Bank of India will be merged into its subsidiary IDBI Bank, in a reverse merger on similar lines as the merger of ICICI into its subsidiary ICICI Bank.
Union Minister of State for Finance (banking and insurance) Anandrao Adsul told Business Standard in Mumbai that "The IDBI restructuring bill has been cleared by the standing committee on finance. This provides for IDBI to be merged into IDBI Bank."
If necessary, the government will give financial support to the resulting merged entity, Adsul added.
Cabinet clearance is expected shortly as the bill is likely to be ratified in the monsoon session of Parliament.
The minister added that there will be no need for exemptions from the statutory liquidity ratio and cash reserve ratio as IDBI can stand on its own feet.