IDBI to tie-up with Care to set up credit info entity

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Kolkata, Jul 25(UNI) IDBI Capital Market Services Ltd,a wholly-owned subsidiary of the state-owned IDBI Bank Ltd, will set up a credit information entity by tying up with Care, the credit rating agency.

''We are waiting for the requisite approval from the Reserve Bank of India (RBI) and as soon as we get it we will launch this new entity,'' Chairman and Managing Director Mahesh Agarwal today said.

Talking to reporters on the sidelines of a Banking Conclave, organised by the Federation of Indian Chambers of Commerce and Industries (FICCI), Mr.Agarwal said the proposed venture would be on line of the Credit Information Bureau of India Limited (CIBIL).

He said the new entity would be a subsidiary of the IDBI Bank.

''The initial capital will be Rs two crore and the equity distribution will be 5O per cent each by IDBI Capital and Care,'' he said.

Mr Agarwal said the IDBI Bank was also in the process of floating an asset management company and an entity to deal with private equity management.

''The asset management company would handle mutual funds while the other entity with private equities. We have applied to the RBI for approval for both these new entities about three months back,'' the CMD said.

He informed that IDBI bank would float the asset management company in a joint venture with domestic or foreign partners. Talks were already in progress with a couple of overseas companies for this purpose.

''Whatever it might be, IDBI Bank will have a majority stake in the proposed venture,'' he said.

Mr Agarwal said for the first time the bank was going for overseas base expansion by opening representative offices and branches in Shanghai, Singapore, Dubai, Baharain and London.

In reply to a question the CMD said by the end of the current financial year, the bank was targeting to achieve a credit growth of 25 per cent.

''We hope that corporate, infrastructure and loan to the small&medium enterprises sector will mainly cater to this credit growth,'' he said.

UNI KDG PL/src1634

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