IDBI has hired three banks to help it with funds amounting to $225 million (around Rs. 1,225 crore) of five year loans.

The three banks given the permission for loan syndication are Australia & New Zealand Banking Group, Royal Bank of Scotland Group Plc and Deutsche Bank.

According to the bank's Chairman Yogesh Agarwal, IDBI has identified two banks as the potential acquisition targets.

The loans would be in two phases, one of minimum $ 115 million and other up to $110 million. The applicable rate would be 205 basis points above the London Interbank Offered Rate (LIBOR) that will yield an annual coupon between 2.25 percent and 2.35 per cent.

IDBI is planning to make presence abroad. The bank has decided to start operations in Dubai, Singapore and Beijing. The CMD said, "We will be opening one branch each in Dubai and Singapore. We also plan to start a representative office in Beijing."

The bank has a network of 509 branches and 900 ATMs spread across the nation. Further the bank has also received approvals from the Reserve Bank of India to set up 200 new branches in the ongoing fiscal.