IDBI plans to foray into private equity, mutual fund in a year

IDBI Bank Ltd is planning an asset management company (AMC) which is likely to be operational in a year.
"We are planning to get into private equity venture and have sought permission from the Reserve Bank of India. We have long experience in the business," IDBI chairman and managing director Yogesh Agarwal said here today on the sidelines of a FICCI-organised banking conclave.
The bank has received RBI clearance for the AMC which was expected to begin operations.
The bank was not looking for any partner for the mutual fund business, he said.
Speaking about business growth target, Agarwal said the bank was expecting credit growth of 18 per cent and 20 per cent in deposits during the current fiscal.
In 2008-09, the bank's credit and deposit expanded by 26 and 56 per cent respectively.
"Expansion of base and slow growth are the reasons for lower growth projections," the chairman said.
The bank was expecting to improve its net interest margin to one per cent from 0.8 per cent currently.
The bank has headroom for Rs 600-700 crore tier II capital which would be utilised as required, Agarwal said.
The bank had sought Rs 8000 crore as recapitalisation from government, but was yet to get any support so far.
Asked about its plan to seek refinance from India Infrastructure Finance Company, Agarwal said its exposure in infrastructure was Rs 40,000 crore and was waiting for the scheme to be unveiled.
Speaking about interest rates, Agarwal said it had bottomed out. From September onwards interest and deposit rates were likely to harden slowly.

Source: http://www.business-standard.com/india/news/idbi-plans-to-foray-into-private-equity-mutual-fund-inyear/67382/on

T Rowe may buy 26 pct in India's UTI Asset

U.S. firm T. Rowe Price may buy a 26 percent stake in India's UTI Asset Management for 6.5-7 billion rupees ($134-144 million), the Economic Times newspaper said, citing two unnamed sources it said were familiar with the development.
The deal, if it were to finally go through, would value India's oldest mutual fund house between 25 to 28 billion rupees or 4-5 percent of its assets, the paper said on Friday.
A T Rowe official told the paper she had no comment. UTI's Chief Marketing Officer said the stake sale was on and he was hopeful it would be completed shortly, repeating a standard a line of the firm for the last 6 months.
UTI Mutual Fund officials could not be reached for immediate comments.

Source: http://www.reuters.com/article/mergersNews/idUSBOM4819920090710