In a bid to increase earnings from new businesses, IDBI Bank is going through the approvals for the asset management company and is also awaiting permission from Reserve Bank of India to set up a?private equity?venture.
IDBI Bank?s chairman and managing director Yogesh Agarwal said: ?Reserve Bank of India has given us the permission to start an asset management company (AMC) and we are going through all the approvals required for that.?
The bank has also applied to RBI for setting up a private equity venture, Agarwal said.
Present at banking conclave organised by Federation of Indian Chambers of Commerce and Industry (FICCI) he said that the bank is expecting 18% growth in advances and 20% growth in deposits this fiscal.
IDBI Bank?s advances grew by 26% and deposits by 56% in 2008-09. ?The economy is not doing too well, so we can?t expect the same growth to take place this year,? Agarwal said.
The Bank?s net interest margin is likely to be increase to 1% this fiscal end from 0.8% at present.?
The bank had sought Rs 8,000 crore as recapitalisation from government, but was yet to get any support so far.
Asked about its plan to seek refinance from India Infrastructure Finance Company, Agarwal said its exposure in infrastructure was Rs 40,000 crore and was waiting for the scheme to be unveiled.
Speaking about interest rates, Agarwal said it had bottomed out. From September onwards interest and deposit rates were likely to harden slowly.