Bank's managing director, KR Maheshwari said: "We are in talks with a few players for offering a 16 per cent stake in the bank. By end-January 2001, we expect to conclude the transaction."

The promoter group - the Hindujas - own a 56 per cent stake in IndusInd Bank as of now. Under the Reserve Bank of India (RBI) guidelines, the promoters of new generation private-sector banks have to reduce their stake to 40 per cent by March 2001.

"The RBI has given us time and the search for a strategic partner is in line with this," he said. The search for a strategic partner is seen enabling the bank to device critical and key marketing strategies in a competitive environment.

Talks of a finding a strategic partner in IndusInd Bank has also left its imprint on the bourses.

The introduction of carry forward (badla) in rolling settlement during the initial days has seen only three stocks (IndusInd Bank was one of them) to register a growth in volumes among the fifteen.

The bank's scrip has risen by around 240 per cent on December 1 since the introduction of carry forward in rolling mode on the Bombay Stock Exchange (BSE) on November 20. The share price has also risen from Rs 20.9 on November 20 to Rs 23.95 on December 7.

It can be recalled that many private banks, who have started operations in India, are required by the RBI to make an offer of their equity within a specified time frame. The secondary advisory committee of the Securities and Exchange Board of India (Sebi), at a meeting on November 28, had taken a decision that they would write to the government and RBI requesting them to ensure that the banks make the required offer.