IDBI Bank is likely to get capital support from the government as the Ministry of Finance, Government of India (GOI) is actively considering the bank's request for capital support. Government of India intends to infuse funds in the bank by way of preferential allotment of equity in favor of GoI, subject to necessary approvals from the board of directors and various other statutory bodies.
Recently, IDBI Bank has increased the rate of interest offered on non-resident external (NRE) term deposit to 9.50 percent, joining a growing number of Indian banks aiming to boost foreign currency inflows amid a depreciating rupee. The 9.5 percent rate is offered on deposits with maturity ranging from a year and one day to 10 years.
