IDBI has kept options open to merge its private banking arm IDBI Bank with itself or with a bank or even sell it off in future.
"There are four options before us for idbi Bank -- one, it continues on its own; two, merge it with IDBI; three, sell it off; and fourth, merge it with another bank," IDBI chairman M Damodaran told reporters in New Delhi on Tuesday.
IDBI retail banking operations from April
Asked whether IDBI was considering merging IDBI Bank with UTI Bank, another private player, he said, "That is the fourth option we are talking about."
Damodaran, who is also the chairman of UTI Mutual Fund, said the government will adopt a "structural approach" to retain UTI Bank's stake with the special undertaking of UTI and there was no plan to sell it off.
Foreign banking major HSBC had surprised every one in the country and acquired 20 per cent stake in UTI Bank in the end of 2003.
HSBC also obtained the permission of Foreign Investment Promotion Board recently to take its stake up to 40 per cent in UTI Bank.
Asked whether, UTI Mutual Fund would allow HSBC to hike its stake, Damodaran said "it can happen when the existing shareholders sell their stakes in UTI Bank."