IDBI, FEDERAL BANK AND FORTIS CONFIRM LIFE VENTURE

Indian bank IDBI is to link with locally based Federal Bank and Netherlands-based financial services group Fortis to launch a life assurance joint venture. IDBI will hold a 49% stake, Fortis a 26% stake and Federal Bank a 25% stake. Federal Bank managing director M Venugopalan said that regulatory approvals were expected within four to five months and that the venture would be ready to launch before the end of the year. The Federal Bank board is set to clear the proposal on May 29 and the capital base is likely to be in the region of Rp7bn to Rp8bn. In March IDBI announced its link-up with Fortis, but a planned tie-in with Bank of Baroda fell apart after IDBI and BoB both wanted a 49% stake.