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Synopsis: IndusInd Bank has received the RBI's green light to set up a mutual fund business, expanding its financial services portfolio. The bank will infuse equity capital into the new subsidiary, complying with RBI's conditions, marking a strategic move into the asset management sector.
IndusInd Bank has garnered attention after receiving approval from the Reserve Bank of India (RBI) to establish a wholly-owned subsidiary dedicated to the asset management business, specifically for mutual funds. This development marks a significant step for the bank as it expands its financial services portfolio.
The bank has stated that it will infuse equity capital into this new subsidiary, adhering to specific conditions outlined by the RBI. This approval allows IndusInd Bank to diversify its offerings and tap into the growing asset management sector, potentially enhancing its revenue streams.
Earlier this year, IndusInd International Holdings Ltd (IIHL), one of the bank's promoters, acquired a 60% stake in Invesco Asset Management, further signaling its interest in the asset management space.
Disclaimer: The information provided is based on recent developments and should be verified from official sources before making any financial decisions.
