IDBI Asset Management, a subsidiary of IDBI Bank has received approval from Securities and Exchange Board of India (Sebi) to start its mutual funds operations.
This is a second beginning for IDBI Bank in the mutual fund business. Erstwhile IDBI, was among the first few entities to launch its mutual fund business in 1994. IDBI first roped in a partner, the Principal Financial Group and eventually sold its interest in 2000 to exit the AMC. Today, the entity Principal PNB AMC has Rs 8,300 crore assets under management.
IDBI AMC would launch its products across equity and fixed income categories. The AMC intends to leverage its branch network to sell its funds. “The bank’s extensive branch network will enable our AMC to grow at a fast pace and become a leading player in asset management business,” Yogesh Agarwal, CMD, IDBI Bank said.
Another public sector bank, Union Bank of India has tied up with KBC Asset Management of Belgium. The joint-venture entity Union KBC AMC has also received SEBI approval and about to start their fund business.
Today, 38 asset management companies operate in India. As on February 28, 2010 the total assets managed by all funds stood at Rs 7,81,033 crore.
Peerless and Axis Bank were the most recent entrant in the business. Meanwhile, Bank of India, SREI Infrastructure Finance, Bajaj Allianz and Indiabulls await SEBI approval to get started.
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