Thursday, January 20 2005 18:58 Hrs (IST) - World Time -

Mumbai: IDBI bank is to be merged with Industrial Development Bank of India (IDBI) in the ratio of 142:100 (every 142 shares of IDBI bank for 100 shares of IDBI), with the Government holding a majority stake in the merged entity.

IDBI's 2.5 per cent stake in the bank would be kept in a trust to bring value to shareholders of the erstwhile financial institution and the balance holding will be extinguished.

The Government will hold 51.3 per cent stake in the merged entity, IDBI Chairman and Managing Director M Damodaran told reporters after separate board meetings of both the entities.