SBI, Japan's SBI Holdings to set up $100mn fund

State Bank of India (SBI) and SBI Holdings, part of Japan's financial services provider SBI group, are setting up a $100 million venture fund for investing in unlisted Indian companies.

A senior SBI official said: "We have reached an understanding on the
formation of the fund, which would be managed jointly. The modalities would be worked out soon, and the venture fund is expected to start operations in the next 2-3 months.

This is first of the three venture funds SBI is planning to set up in partnership with global companies. Two more such tie-ups are expected to be announced in the next couple of months.

The venture fund being set up with the Japanese entity would invest in
unlisted companies in information technology, pharmaceuticals, infrastructure and manufacturing.

SBI Holdings, which is listed on the Tokyo Stock Exchange, has five core
businesses: Asset Management, Brokerage & Investment Banking, financial Services, real-estate, and Life related Network.

State Bank has already established SBI Venture, a venture capital company as a fully-owned subsidiary of SBI Caps. The new company is likely to pick up stake in a host of start-ups and private equity funds in the country.