IDBI eyes entry into life insurance this fiscal

New Delhi, Aug 21: INDUSTRIAL Development Bank of India (IDBI) is hopeful of foraying into life insurance sector while planning to tie up separately with US-based Principal Financial Group for pension fund by this fiscal.

"We are hopeful of finalising our life insurance venture with a foreign partner this fiscal. We are yet to finalise the partner," top IDBI officials said here on Tuesday.

The FI is awaiting the report of Boston Consulting Group (BCG) appointed last fiscal to prepare a roadmap and suggest steps for transforming IDBI into a universal bank, they said. The officials were non-committal on IDBI’s foray into general insurance but said the insurance foray was part of IDBI’s future plans to become a universal bank offering all financial products under one roof.

IDBI also planned to finalise the insurance venture last fiscal itself but was entangled in other serious issues including pile of non-performing assets to over 14 per cent, the officials said. The FI submitted its universal banking proposal to the government and is believed to have sought government intervention in cleaning up its balance sheet. The officials said the bank was planning to foray into pension sector with Principal Financial Group.