IDBI Bank, the banking arm of IDBI, is gearing for action on the acquisition front. The bank has initiated talks to take over Bank Muscat’s Indian operations by offering a 20 per cent strategic stake to the latter’s Omani parent, Besides the stake, the Omani parent would also have a

board presence in IDBI Bank.While both Bank Muscat and IDBI Bank officials were tightlipped, it is believed that the deal could be inked within a month or so.

In return for the stake, the single-branch operations of Bank Muscat at Bangalore would be absorbed into IDBI Bank.

It is also reliably learnt that the senior management of both Bank Muscat’s Omani parent and IDBI Bank have held series of discussions on the above issue. Bank Muscat’s parent had infact taken over the Commercial Bank of Oman, becoming the fourth largest bank in the Gulf Co-operation Council (GCC) area.

Bank Muscat-India, headquartered in Bangalore, was in the news recently for having launched a new retail bank product called "Easy Life". Market sources indicate that the bank has had a good response to this product.

The bank has a deposit base of over Rs 130 crore and advances of over Rs 80 crore with a capital base of about Rs 44 crore. Industry sources point out than limited branch presence has hampered the growth prospects for Bank Muscat.

IDBI Bank, has infact initiated a changeover by re-designing its logo, colour scheme and verbal communication aimed with the objective of becoming more "retail focused". It had also roped in former Miss India Manpreet Brar for the formal announcement of the changeover.

IDBI Bank was also in the news some months ago, having roped in former Citibanker Gunit Chadha as its chief executive.

In recent times, the bank has been aggressively recruiting more ex-foreign bankers, which includes the likes of Mr Ajay Bimbhat (currently head-retail) and Mr Vineet Kohli (Chief Finance Officer).

IDBI bank, which is majority owned by IDBI (with a 50 per cent plus stake), had net profit of Rs 18.22 crore and a capital-adequacy ratio of 11.79 per cent for the first quarter-ended June 30, 2001. It has 60 branches nationwide and 77 ATMs.