As part of its strategy to increase income from non-core businesses, Indian Overseas Bank (IOB) is likely to float a capital market subsidiary next year. | |
| The IOB board has already approved the proposal for a capital market subsidiary, but the bank is presently going slow on the project. |
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| T S Narayanasami, chairman and managing director, IOB, said that the bank would again take up the issue of capital market subsidiary in the next fiscal after structuring its direct fee-based business. |
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| He was in Kolkata for signing a memorandum of understanding with Tata Mutual Fund for the distribution of latter's products. |
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| The bank has already tied up with six mutual fund houses for distribution of their products. |
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| Narayanasami informed that capital market subsidiary is definitely on the agenda, but the bank would consider it in the second phase, as now IOB is laying thrust on direct fee-based income like distribution of mutual fund and insurance products. |
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| "Direct fee-based income will have impact on the bank's bottomline immediately. In case of subsidiary, we have to depend on dividends. So, we have decided to first streamline the direct fee-based income," he said. |
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