The Industrial Development Bank of India (IDBI) is ready to establish branches at Moscow, Singapore and Bahrain.

Yogesh Agarwal, chairman and managing director of IDBI said, “We have already applied to the regulator in this regard and the work will commence when we get the necessary clearance.”

The bank is looking to raise Rs 300 crore via debt as tier II capital during the current fiscal and has no plans to go via equity route, he added.

At present the total business of the bank stands at Rs 100,000 crore as compared to Rs 40,000 crore deposits and Rs 60,000 advances.

Its capital adequacy ratio (CAR) is more than 14 percent that is 9 percent higher than the RBI’s necessity.

According to Agarwal, the task of development banking is ended and the bank cannot have enough money to offer funds at a concession rate.

“In a bid to remain competitive we are bound to lend at the market rate and look to increase our business portfolio,” he added.

Incidentally Agarwal stated that the retail, priority zone, SME and farming would be the prime arenas in which the bank would be concentrating.

“We would like to increase our retail sector lending to 50 percent of the total advances form current 10 percent and consequently would be recruiting people for this sector,” Mr. Agarwal stated on the sidelines of the banking meeting directed by the Federation of Indian Chambers of Commerce and Industry (FICCI), at Kolkata.