The Industrial Development Bank of India will acquire 10 per cent equity stake in the Nepal Development Bank Ltd, a private sector bank based in Kathmandu.

IDBI has agreed to subscribe to the equity shares of NDBL, while the latter would allot 1,60,000 equity shares aggregating Rs 1 crore (10 million), IDBI informed the Bombay Stock Exchange on Tuesday.

A formal subscription agreement was signed on Monday between IDBI and NDBL, it said.

This subscription constitutes 10 per cent of the paid-up capital of NDBL, it said.

IDBI has subscribed in full to the quota earmarked by the Nepal-based bank for subscription of foreign banks or financial institutions, it added.