Yogesh Agarwal in Calcutta on Friday. A Telegraph picture.

Calcutta, July 25: IDBI Ltd is planning to get into the asset management and private equity business.

“We have sought approvals of the Reserve Bank of India (RBI) for starting the mutual fund and private equity business,” said Yogesh Agarwal, chairman and managing director, IDBI Ltd.

According to Agarwal, IDBI had approached the RBI three months ago and was still awaiting the apex bank’s approval. “The asset management company will be formed as a joint venture in which IDBI will hold a majority stake. We are talking to a few players, both domestic and foreign, but nothing has been finalised yet pending RBI approval,” Agarwal said.

He said that the bank was not looking at acquiring an existing fund house. “It will be a new set-up.”

Aviva, UK’s largest and the world’s fifth largest insurance group, is scouting for a partner to venture into the mutual fund business in India. According to sources, Aviva is at an advanced stage of negotiations with a domestic firm.

However, no confirmation was available either from IDBI or from Aviva on whether the two are joining hands for an asset-management venture.

Agarwal said the IDBI management was yet to decide on the final structure of the private equity business. IDBI may either undertake the business itself through a separate division or set up a subsidiary.

IDBI has also approached the government for its approval to raise capital through a rights issue or a second public offering of equity shares.