Wednesday, November 11, 2009

Dhanalakshmi Bank gets approval to start merchant banking

Sebi has given approval to the private sector lender Dhanalakshmi Bank to start its merchant banking business and also the bank is almost ready to acquire a major stake in an existing asset management company, informed a top bank official.

"We have got Sebi approval for starting our merchant banking business. We have also zeroed-in on an existing asset management company in which we intend to take a major stake," Dhanalakshmi Bank's Managing Director and CEO Amitabh Chaturvedi, told PTI here.

He told Parag Kothari will be looking after merchant banking business. Parag Kothari has recently joined the bank from Cholamandalam.

He added currently no separate subsidiary has been formed and a division within the bank will be seeing the merchant banking business. He said, "This will add to our bouquet of services."

He told in the beginning bank has plans to start businesses such as lead- managing public issues, deal structuring, QIPs and stake-sale, among others.

Regarding banks venture into mutual funds, Chaturvedi said bank has finalized on an existing player and in this bank might be holding either a 49 per cent or 51 per cent stake.

He added, "Negotiations are in the final stages".

Before, bank had short-listed four MF players for either a buy-out or a stake-buy.


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