Speaking at Vysya Bank's extraordinary general meeting in Bangalore on Sunday, he said as a part of this, the bank would enter into mutual funds business in collaboration with its strategic partner Bank Brussels Lambert (BBL) to whom it had divested an additonal 10 per cent of its equity holding. BBL would provide expertise and technology to Vysya Bank and a final decision to this effect would be taken in a month's time, he said.

At the EGM, the board of directors of the bank secured unanimous approval from shareholders for upping BBL's equity in the bank by 10 per cent. While focusing on its core competency, the bank would also focus on retail and corporate banking by drawing upon the expertise and technology base of BBL, he said. He said Vysya Bank also has plans to open a desk at the Dubai branch of BBL.

Hesaid the bank has plans to enter into insurance segment with the help of the Netherlands-based ING Group. The $410 billion ING Group has been active in the fields of banking, insurance and asset management in 60 countries.

Vysya Bank already had signed an memorandum of understanding (MoU) with ING for distribution of life insurance products, he said. The bank would soon sign another MoU with ING for equity participation in the asset management joint venture and for distribution of mutual funds. These MoUs would culminate into joint ventures and would be funded by increasing equity holding of its partners. BBL would increase its equity holding by 10 per cent making it 20. The JV was expected to bring in Rs 78 crore to Vysya Bank's kitty, he added. Recently, BBL has agreed to subscribe upto 22,03,600 equity shares of Rs 10 each at a price of Rs 150 per share (including premium of Rs 140). The exercise was expected to strengthen the alliance with ING Group. Besides expanding the capital base of the bank, theincrease in equity would support technology upgradation of the bank, He said.

The BBL's offer would be valid till September 30 subject to obtaining the necessary regulatory approvals in India and Belgium. In 1996, BBL had acquired 17,61,800 equity shares on preferential basis forming 10 per cent of the post-issued capital of the bank. ``Today, the name of the game is diversity in terms of products and locations. Diversity of risk and speed are the determining factors of banking,'' he said.