IDBI Bank enters MF market independently


Bangalore: All set to play second inning in the mutual fund arena, IDBI Bank has solely launched its IDBI Asset Management with an initial capital investment of 25 crore. The bank had earlier entered the industry in a 50: 50 joint venture with U.S. based Principal Group in 1999. But it made an exit from the business in 2002 after selling its stakes to Principal. Commenting on the matter, Yogesh Agarwal, Chairman and Managing Director (MD), IDBI Bank said, "Fortis, our insurance partner, had offered to partner us in AMC business but we declined the offer. But we will review prospects of partnership in future. Another option was to acquire a mutual fund. But we felt it was better to have a greenfied project. Krishnamurthy Vijayan, who was heading JP Morgan AMC in India, has been appointed as the MD and CEO of the AMC. 2010 seems to be happy year for the bank, as it is included in the list of public sector banks receiving a facelift from the Government this year in the form of capital infusion worth 16, 500 crore along with Bank of Maharashtra, Allahabad Bank, Central Bank of India, Dena Bank, Indian Overseas Bank, Syndicate Bank, UCO Bank, Vijaya Bank and Canara Bank. Also, the bank has asked for 8000 crore worth capital from the Government in the next three years.