The government will wait for the recommendations of the parliamentary standing committee on the IDBI (Repeal) Bill before firming up the restructuring of the Industrial Development Bank of India.

The committee is expected to submit its report during the forthcoming Budget session of Parliament.

Reserve Bank of India Governor Bimal Jalan made a presentation on Tuesday before the standing committee on the issues involved.

RBI is expected to support exemption to the new bank from adhering to statutory liquidity ratio and priority sector lending norms. A waiver from SLR norms will reduce IDBI's borrowing needs before conversion into a bank.

The committee will also seek evidence from the Confederation of Indian Industry and the Federation of Indian Chamber of Commerce and Industry. Former IDBI Chairman S H Khan will also be asked to depose, but the date has not been set.

A committee headed by Khan was the first to propose conversion of development financial institutions into banks unless the government was able to provide them with adequate funds. ICICI Bank chief K V Kamath, HDFC chief Deepak Parekh, and RBI officials were also members of the committee.

Senior finance ministry officials said the government had kept various options open for IDBI's restructuring and would take a decision based on the standing committee's report.

"We will wait for the standing committee's report before committing on another course of action," said an official.

They said restructuring of IFCI Ltd and the Industrial Investment Bank of India would only be taken after deciding on IDBI.

The Industrial Development Bank (Transfer of Undertaking and Repeal) Bill, 2002, introduced during the winter session of Parliament, was referred to the standing committee after Opposition parties led by the Congress tried to stall the introduction of the Bill in December.

The standing committee has already taken oral evidence from finance ministry officials and IDBI executives, including Chairman P P Vora.