IDBI to float life insurance company

In a major move after becoming a universal banker from a development financial institution, IDBI was in the process of floating an insurance company in the life category, V P Shetty, chairman of IDBI said today.

IDBI had already appointed an insurance consultancy firm Watson & Wyatt to work out a model, Shetty said, adding that the matter would be crystallised within two to three months.

Shetty said IDBI would like to have a joint venture partner in the life insurance venture and that it could be either a domestic or a overseas company.

Later, IDBI would think of entering the non-life sector, he said.

Besides focussing on sectors like power, road and infrastructure, IDBI would also look at funding corporates going for acquisitions abroad, he said.

As of March 2005, the asset base of IDBI was to the tune of Rs 81,000 crore, which would go upto Rs 90,000 crore at the end of this financial year.