Financial Daily from THE HINDU group of publications
Friday, Jan 06, 2006
Financial Daily from THE HINDU group of publications Friday, Jan 06, 2006 |
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Corporate
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Diversification Markets - Financial Services IDBI Capital awaiting RBI nod for foray into commodities K.R. Srivats
New Delhi , Jan. 5 IDBI Capital is looking to diversify into commodities to stabilise its revenue streams and de-risk its portfolio of businesses. For its foray into commodities, the company is awaiting the Reserve Bank of India's nod. "We have already made an application (three-four months ago) to the RBI. IDBI Capital has floated a 100 per cent subsidiary — IDBI Commodities Ltd for our foray into commodities," Mr S. Muhnot, Managing Director and CEO, told Business Line, when asked about IDBI's foray into commodities. As a leading accredited primary dealer in the government securities market, IDBI Capital has been time and again impacted by the vagaries of interest-rate movements. For 2004-05, the company had registered a net loss of Rs 74.27 crore (profit of Rs 200.68 crore in 2003-04). The company has not been able to benefit from any rise in inflation in the economy in view of its absence in the commodities space. Asked what kind of role IDBI Capital or its commodities subsidiary is expecting to play in the commodities market, Mr Muhnot said, "We plan to do proprietary trades and also facilitate retail investors to participate in commodity exchanges."
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