To generate revenue from new businesses, the Industrial Development Bank of India (IDBI) is waiting for approval from Reserve Bank of India (RBI) to set up a private equity venture.
Yogesh Agrawal, Chairman and Managing Director, IDBI Bank said, “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.” The central bank has already approved IDBI to start an asset management company (AMC).
Speaking about business growth target at banking conclave organized by Federation of Indian Chambers of Commerce and Industry (FICCI), Agarwal said, “The bank was expecting credit growth of 18 percent and 20 percent in deposits during the current fiscal.”
In the financial year ended March 31, 2009, IDBI Bank's advances grew by 26 percent and deposits by 56 percent. The bank is not expecting the same growth this year as the economy is not doing too well.
The bank had sought Rs.8,000 crore as recapitalization 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.
Source: Silicon India