Washington-based International Finance Corporation is likely to invest in more private banks in India, including Kotak Mahindra Bank, although it has cut exposure in Centurion Bank and Global Trust Bank.
"India needs more private banks. We are looking at investments in more banks," IFC South Asia director, Dimitris Tsitsiragos, said.
He said IFC was looking at Kotak Mahindra Bank, the erstwhile Kotak Mahindra Finance that converted itself into a bank after getting licence from the Reserve Bank of India.
Although the IFC official declined to give details, banking sources said the World Bank's private lending arm was eager to extend 22 million dollars as a three-year loan.
The IFC assistance assumes importance in the wake of KMB's aggressive expansion drive targeting 20 more branches to expand its reach from the present 75 odd outlets.
The bank has deposits worth over Rs 1,500 crore (Rs 15 billion) and advances to the tune of Rs 2,500 crore (Rs 25 billion).
While eyeing fresh exposure in the banking sector, IFC has cut its exposure in two other banks.
"Our stake in Centurion Bank has come down to about 3.0 per cent," Tsitsiragos said.
IFC had about 10 per cent stake till last year in the Centurion Bank, which has seen a change in management after Rana Talwar's Sabre Capital and Bank of Muscat took over charge last fiscal.
"We think Sabre will ensure good growth and hope they will be successful (in turning around the ailing bank)," Tsitsiragos said.
IFC had also reduced its stake in Global Trust Bank to 4.16 per cent after it sold 3.61 per cent of its interest in the Hyderabad-based bank in December last year.
Apart from the investments in private banks, IFC has invested heavily in the country's leading housing finance companies like HDFC, Dewan Housing, Birla Home and Sundaram Home Finance.
In recent years, Tsitsiragos said IFC has extended rupee loans equivalent to $12 million to Dewan, $22 million to Birla and $15 million to Sundaram.
