PSU banks launch Rs 55cr venture fund

Canbank Venture Capital Fund has teamed up with with five other
public sector banks and Small Industries Development Bank of India (Sidbi) to launch a new fund with a corpus of Rs 55 crore.

Other core contributors to the Bharat Nirman Fund are Allahabad Bank, Corporation Bank, Indian Overseas Bank, Oriental Bank of Commerce and Vijaya Bank.

Launching the fund, M B N Rao, chairman and managing
director of Canara Bank, said public sector banks accounted for 70% of deposits and advances, but "not much thought has been given (by them) to the emerging venture capital scene."

 He said venture capital investment in the country was expected to rise to $11.10 billion by 2008.

Rao said the Bharat Nirman Fund, which has an eight-year maturity, might be raised up to Rs 100 crore at a later stage.

The fund would invest in emerging Indian businesses in IT/ITeS/BPO, auto and auto components, telecom, biotechnology, healthcare, pharmaceuticals, engineering, textiles, infrastructure-led sectors and domestic-demand driven segments.

He said the fund would be managed by a committee with representatives from each core contributor.