Two years ago, IDBI Bank was merged with IDBI. With the acquisition of United Western Bank, IDBI will more than double its branch network. Its chairman, VP Shetty tells Business Standard what lies on the road ahead.
Were you surprised by the RBI decision?
Not at all. In fact, we were the fittest contender. We have the balance sheet strength. We have 195 branches and following this, our branch strength will go up to 425. It is a very good deal for United Western and for us.
Have you completed the earlier merger (with IDBI Bank)?
The integration process is getting over. There are some staff-related issues. We will continue to protect their salary for three years till April 2008.
What is your plan for United Western?
We will not merge it with IDBI immediately but will keep it as a strategic business unit for the time being. It has about 70 urban branches and the rest, in rural areas, have good agriculture and small and medium loan exposures. It will add value to our business.
What about the employees?
We will absorb them and their salary and compensation packages will be protected for about two years.