IDBI eyes foreign ally for risk foray

IDBI Limited said the bank has already zeroed in on the foreign player to be its partner in the proposed life insurance venture.

"We have already identified the foreign partner and a memorandum of understanding (MoU) will be signed soon," chairman and managing director V P Shetty said.

However, he did not divulge the identity of the foreign partner.

"A final announcement on this front is expected within fifteen days after we sign the MoU on this front with the foreign partner," he said.

The foreign partner, as permitted by the Insurance Regulatory and Development Authority (Irda), would have 26 per cent stake in the proposed venture, he added.

Shetty said following the signing of the MoU, the bank would move to the Irda seeking its nod.

However, the bank had not yet decided its peer in the domestic front.

"We have initiated talks with quite a few banks in the domestic front to be our partner. But, not yet zoomed in on any of them," Shetty said, refuting media reports that IDBI Ltd had a spat with Bank of Baroda involving management control over the proposed venture.