IDBI Asset Management, wholly-owned subsidiary of IDBI Bank, has received Securities and Exchange Board

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of India (Sebi) nod to launch its mutual fund business in the country. The new asset management company (AMC) plans to file for its first product with Sebi next week and expects to launch it in a month.

Krishnamurthy Vijayan, managing director and chief executive officer of IDBI Asset Management, told Financial Chronicle that initially the parent company – IDBI Bank – is infusing Rs 25 crore in the AMC business and if needed another Rs 25 crore would be pumped in the future. “Our first product would be an index fund and in our first year of operations, we would like to have only index funds. Once we have successfully established these funds, then we would plan to launch other fund categories,” he said.

Speaking on the occasion, Yogesh Agarwal, chairman and m,anaging director, IDBI Bank, said, “The launch of the asset management business is in line with the bank’s long-term vision to emerge as a leading universal bank that will provide the entire gamut of financial services to its customers. The asset management industry in India is one of the fastest growing financial service businesses. IDBI Bank’s established brand name and its extensive branch network will enable our AMC to grow at a fast pace and help us become a leading player in the asset management business. ”