IDBI, Union Bank to foray into asset management biz

While IDBI Bank had filed application for license in January this year, Union Bank of India had submitted its papers with the regulator in February.

All these proposals are at the advance stage of clearance, official sources said.
During the course of the year these banks are expected to get license and thereafter they can start asset management, sources added. Meanwhile, the country’s third largest private sector lender, Axis Bank has already got the regulator’s approval to start asset management business. The Union Bank of India has set up an asset management firm with KBC Group of Belgium. The joint venture, in which Union Bank owns 51 per cent stake expects to start operations during the current fiscal.

Another public sector lender IDBI Bank has board approval to set up the asset management company either as a wholly-owned subsidiary or as a joint venture.