The Industrial Development Bank of India (IDBI) is in talks with the US-based Principal Financial Group (PFG) for a possible joint venture for the mutual funds business, especially with regard to the pension fund which is to be introduced in the current financial year.
"Talks are on and we expect the collaboration to take the shape of a 50:50 joint venture," IDBI executive director V P Singh said.
A final decision on the project is yet to be taken. From IDBI's side, the joint venture partner will be the financial institution's subsidiary, IDBI Investment Management Company, which has been appointed as the investment manager to IDBI Mutual Fund.
The proposed joint venture is expected to cash in on retailing opportunities in the mutual funds business and expand it through the use of technology and new product developments.
The negotiations are part of IDBI's plans to strike links with a strategic foreign investment banking partner for its mutual funds and broking subsidiaries.
The financial institution is keen on capitalising on the international experience of PFG in developing products and procedures to suit small- and medium-term investors.
