IDBI Bank and Union Bank, the two India-based public sector banks, are chalking out plans to diversify their operations and foray into asset management business – reported Economic Times. Reportedly, both the banks had filed applications for license with SEBI, the market regulator, in January and February this year, respectively.
Offcial sources said that the applications are at the final stage of clearance and the banks can commence their operations soon after. Union Bank has already formed an asset management firm with Belgium-based KBC Group. It owns 51% stake in the joint venture and plans to begin operations by the end of this fiscal.
Meanwhile, it has been reported that India-based private sector lender, Axis bank has bagged SEBI’s approval to begin asset management operations. At present, there are five mutual funds either fully or partly-owned by Indian lenders, along with overseas partners, reported the newspaper.
