According to the recent report from the Press Trust of India, the public sector lender IDBI has planned to launch infrastructure debt fund with the help of various financial institutions and the state owned banks.
The Regulatory Body the Reserve Bank of India has to give approval to banks to lauch those products, once the bank allows they will launch the products with the help of financial institutions.
The IDBI bank does not reveal the information about the financial institutions to which they seek support but the available information shows that the bank has approached its public sector peers, which includes Corporation Bank and Pure-Play infra finance company, India Infrastructure Finance Company.
The RBI has given approval the banks and non-banking finance companies to launch the IDF and that can be setup as mutual funds and NBFCs. If the IDF has to be set up as NBFCs it should have minimum net owned fund of Rs 300 crore, including the capital adequacy ratio about 15 percent.
The Government of India has allocated more funds for the infrastructure and the government has planned to spend $1 trillion which is double that of the eleventh plan. The IDBI Bank has planned to set up the IDF through some specialized funds.
IDBI bank offers personalized banking and financial solutions to its clients in the retail (home loan, personal loan, vehicle loan, education loan etc.) and corporate banking arena through its large network of Branches and ATMs, spread across length and breadth of India.