IDBI will finalise on Thursday the scheme for merging with itself its private banking arm IDBI Bank.
Industrial Development Bank of India's board of directors will meet on January 20 to consider the scheme of amalgamation of IDBI Bank with itself and other related matters, it informed the Bombay Stock Exchange on Wednesday.
The due diligence that IDBI was carrying out on IDBI Bank and vice versa, is understood to have been completed and a report has been submitted in the first week of January.
Global management consultant KPMG and Khimji were carrying out the due diligence for the merger, IDBI sources said.
The merger process of the bank with IDBI was expected to be completed by March end, they said.
"IDBI Bank is expected to come up with a robust financial performance in the third quarter and the result will be declared in the third week of January," a senior bank official said.
After conversion into a commercial bank from a financial institution, IDBI had decided to merge its private banking arm IDBI Bank with itself.
IDBI plans to merge the retail banking branches of IDBI Bank to expand its reach. IDBI has 120 branches, while IDBI Bank has 110 branches in the country.
Board of directors of both the entities had approved the merger last year and consultants were appointed to carry out valuation of the banks.
