IDBI Bank mulls IPO for ratings agency Care

By Saikat Das

IDBI Bank is mulling an initial public offer for ratings agency Care in which it holds a 26% stake, in the near-term, an official familiar with the matter, told moneycontrol.com

According to sources, the bank is keen on a public listing for Care as it is the only ratings agency, which is not yet listed on the stock markets.

However, discussions are at the initial stage and the size of the IPO is yet to be determined, the official said.

Meanwhile the youngest public sector lender IDBI Bank is aiming for 25% CASA (current account savings accounts) to total deposits in 2011-12, from 20% last fiscal year, said RM Malla, chairman and managing director. Increasing CASA is important for any bank, as a higher CASA amongst overall deposits, will bring down its cost of funds since interest rates on saving accounts are the lowest.