“We have filed the Draft Red Herring Prospectus (DRHP) with the Sebi on 1 December and the public issue is expected next month,” Indian Bank chairman and managing director, Mr KC Chakrabarty said here yesterday.

The bank has proposed to reserve 8,595,000 equity shares for allotment to employees and the balance 77,355,000 equity shares would constitute the net offer to public. Post IPO, the government's stake in the bank would be reduced to 80 per cent.

Speaking about mergers and acquisitions of banks in the current scenario, Mr Chakrabarty said that consolidation is a must for financial survival but Indian Bank would start thinking of mergers post 2010.

Regarding the National Pilot Project for Financial Inclusion, launched last December in Puducherry, Mr Chakrabarty said that every individual there has been provided with a bank account. The project, launched in Burdwan district in West Bengal a few months ago has been successful in providing the entire population of 20 villages with bank accounts. The project is under implementation in West Midnapore, Hooghly and Siliguri.