Indian government-owned lender IDBI Bank has unveiled a $2.9bn fundraising plan as part of a three-year business revamp.

The revamp will include doubling the bank’s loans and deposits, increasing lending to individuals and the agricultural sector, as well as reducing gross non-performing assets ratio to below 3%.

IDBI Bank managing director and CEO Kishor Kharat said: "The plan has nothing to do with whether we remain a public sector or a private sector bank because it does not talk about a composition of ownership or holding. On a standalone basis, we have made this plan for transforming the bank and, therefore, the thrust is more on business transformation."

Plans are also on to add 2000 new banking points including 500 new branches, and about 6,000 additional employees, Kharat added.

The revamp plan comes a day after the government of India announced that it is open to bring down its stake in the bank to below 50%.