NEW DELHI, FEBRUARY 18: Financial Institutions (FIs) led by Industrial Development Bank of India (IDBI) today decided to bail out the Rs 352 crore rights issue of Industrial Finance Corporation of India (IFCI) by subscribing to their portion of the issue.IFCI has also requested the government to pump in Rs 400 crore through a preferential allotment to meet the stipulated nine per cent capital adequacy ratio (CAR) by March, 2000. As on March 31, 1999, the IFCI's capital adequacy stood a 8.37 per cent.IDBI, being the single largest shareholder of IFCI at 28.74 per cent, the FIs' decision was crucial to the success of the rights issue. IDBI will have to invest about Rs 100 crore to subscribe to the issue.
