IDBI to float venture, pvt equity funds

Industrial Development Bank of India (IDBI) is all set to launch venture and private equity funds as part of its plan to become a financial conglomerate.

"We have done the homework and put in place the necessary infrastructure (for launching and managing the funds). We are now awaiting clearance from the Reserve Bank of India (RBI)" said V P Shetty, chairman.

Shetty was speaking to reporters at the launch of online trading platform, idbipaisabuilder.in, for retail equity investors by its subsidiary IDBI Capital Market Services.

The trading account facility will be offered as a 3-in-1 account package along with a bank account and an account to hold shares in dematerialised form.

IDBI Capital will also spearhead the government-owned bank's foray into venture and private equity funds, IDBI sources said.

IDBI Bank is also giving finishing touches to its four-year business plan that envisages a compounded annual growth rate of 18-20 per cent in the bank's balance sheet size.

The asset base of IDBI is about Rs 81,000 crore. The management will discuss plans with the field staff and firm up details over the next few days, Shetty said.

Besides the thrust on retail finance, the bank would also focus on fee-based income through avenues such as loan syndication, he added.