IDBI to float arm for PE foray

IDBI Bank is planning to enter the private equity (PE)and mutual funds businesses. IDBI will submit its application for MF business by September this year, while the PE venture will be through a subsidiary which will be in place by end of the current financial year.

CMD V P Shetty said IDBI also plans to launch insurance business in alliance with Fortis by July.

"We should be selling our first policy by July 2007. We will focus on the mutual funds business." He said the MF business will be a solo foray and will be built from scratch.

On the PE space, Shetty said IDBI had expertise in the venture capital space and will leverage on this for the PE foray. "We will be shortly entering with a fund. We will launch a subsidiary for this foray."

Meanwhile, IDBI Bank has also reversed its decision to merge its housing loan subsidiary with itself. "We will not be going ahead with the merging and instead will keep it separate," Shetty said.

Besides, the bank is not in a hurry to carry out the divestment of IDBI Capital Services.