IDBI Bank to avail refinance worth Rs 2,000 crore in H2

In an effort to raise affordable resources, IDBI Bank will step up recourse to refinance facility provided by financial institutions like Small Industries Development Bank of India (Sidbi). It intends to avail refinance worth Rs 2,000 crore till March 2011, instead of borrowing in market at higher rate (the liquidity crunch has pushed rate for short-term funds). The refinance assistance does not attract statutory liquidity ratio and cash reserve ratio norms. It also helps to address asset liability mismatch.

IDBI Bank deposits increased to Rs 1, 54,305 crore from Rs 1, 30,677 crore a year ago. Casa share stood at 15.26 per cent of total deposits. Bank aims to raise share of Casa to 20 per cent by March 2011. For most of commercial banks Casa ratio is above 30 per cent. It could be as high as 50 per cent in certain banks.crackcrack