IDBI Bank has charted out major plans to foray into commodities, mutual fund, insurance and pension, as it has shifted focus from wholesale to retail segment to emerge as a financial powerhouse.
"We have applied to SEBI (Securities and Exchange Board of India) and RBI (Reserve Bank of India) for approvals to set up an asset management company. The AMC is likely to be in place by March 2006," IDBI Capital CEO S Muhnot told PTI.
IDBI earlier had ties with Principal Financial of US in IDBI Principal Mutual Fund but it exited the venture two years ago. A major chunk of IDBI's stake was bought by Punjab National Bank and Vijaya Bank.
In the proposed AMC, IDBI Bank will hold 65 per cent while its subsidiary IDBI Capital will hold 35 per cent stake.
As part of IDBI's diversification plans into other businesses to broad-base income, Muhnot said: "We will set up a commodities subsidiary for trading on a proprietary basis as well as providing broking services to investors to participate in the commodities market."
IDBI has applied to RBI for permission three months back to set up IDBI Commodities Limited.
As banks are making a beeline to enter insurance business to grab a pie of long-term funds, IDBI Bank has also approached Insurance Regulatory and Development Authority for license to foray into life insurance with a foreign partner.
"The three foreign insurers shortlisted for the JV are -- Fortis, Generali and Dai-ichi," a top IDBI official said.
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