The Hindu Business Line : Nageshwara Rao to head IDBI's insurance venture

Mr G. V. Nageshwara Rao, head of IDBI Ltd's Commercial Banking Strategic Business Unit, will head its insurance joint venture. This was announced by Mr V. P. Shetty, Chairman and Managing Director, IDBI Ltd, at the bank's annual general meeting.

Mr Rao was the Managing Director and CEO of erstwhile IDBI Bank, before it merged with IDBI Ltd in October 2004.

The insurance venture is being set up jointly with Fortis and Federal Bank, with IDBI having majority stake of 48 per cent. Fortis and Federal Bank will have 26 per cent stake each.

Other plans

IDBI's other plans this fiscal include setting up of a subsidiary for private equity and a separate subsidiary for primary dealer business. The bank is also planning to enter the mutual fund business by setting up an asset management company, said Mr Shetty.

As of now the bank's PD business is being done through its capital market subsidiary, IDBI Capital Market Services Ltd.

"We will be approaching SEBI immediately for approval for the private equity subsidiary and AMC. We have approval from our board for both initiatives. Our prior experience in investing in venture capital will help," he said.

The bank is also planning to hire about 600 additional officers through direct campus recruitment. In the first quarter, IDBI hired 370 personnel. The attrition in the bank is in the same levels as the industry. "It is a natural phenomena because the financial sector is booming. Public sector banks have become a training ground today," he said.

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Nageshwara Rao to head IDBI's insurance venture