IDBI to enter mutual funds business

July 25th, 2008 - 8:42 pm ICT by IANS  

Kolkata, July 25 (IANS) The IDBI Bank Ltd is planning to enter the mutual fund business, a top bank official said here Friday. Talking on the sidelines of a Banking Conclave here, Yogesh Agarwal, the bank’s chairman and managing director, said: “We are talking to a few foreign companies for setting up an asset management company, where we would have the majority holding.”

It is expected that the bank would post a 25 percent credit growth in the current fiscal.

The bank is planning to open five branches abroad, for which it is yet to get necessary approvals. It has applied for full-scale branches in Singapore, Dubai, Bahrain and London and is looking forward to opening a representative office in Shanghai.

IDBI also plans to open 200 new branches in the country.

The bank is also planning to venture into private equity business, either alone or through a joint venture.

IDBI arm IDBI Capital Market Services Ltd is planning to set up a credit information bureau through a joint venture with credit rating agency CARE. The new entity will have a capital base of Rs.200 million.

“We are waiting for the final approval from the Reserve Bank of India to begin operations,” Agarwal said.

It would be a separate company, with both the entities having equal stakes. The credit information bureau would provide information regarding credit worthiness of borrowers.

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