New launch: Mr Yogesh Agarwal (left), Chairman and Managing Director, IDBI Bank, and Mr Krishnamurthy, MD and CEO, IDBI Asset Management Ltd, at a press conference to announce the launch ‘Bank's Mutual Fund Subsidiary' in Mumbai on ThursdayIDBI Bank is re-entering the mutual fund space, this time around with its wholly owned subsidiary IDBI Asset Management. The bank has received all the necessary regulatory approvals and the first fund is expected to be launched by mid-April, said Mr Yogesh Agarwal, Chairman and Managing Director at IDBI Bank.
The first offering will be an index fund called the Nifty Fund based on NSE's Nifty, he said.
The bank has invested Rs 25 crore in the mutual fund and has earmarked another Rs 25 crore as the fund house grows, he said.
IDBI Bank had exited its 50:50 partnership with Principle Financial Services in 2003. Explaining the rationale behind re-entering the mutual fund business, Mr Agarwal said the bank had exited the venture to concentrate on setting up its retail business. “Now with an established retail presence, we think it's the right time to enter the mutual fund space,” he said.
Right now, the team consists of 27 people and the company plans to take the number up to 200, said Mr Vijayan, who earlier headed the asset management business of JP Morgan in India.
The launch of its asset management arm is IDBI Bank's efforts to broaden its product range, said Mr Agrawal. “The bank already advises on selling mutual fund and has over 1,000 AMFI trained personnel.”
Source: http://www.thehindubusinessline.com/2010/03/26/stories/2010032653501000.htm
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