Buyout group TPG has joined forces with Hinduja family-owned IndusInd Bank and a private promoter entity of the lender to form a consortium and make a firm bid for IDFC’s mutual fund business, said people aware of the development.

The TPG-IndusInd combination is competing with three other such groups that have got formed ahead of the mid-March binding bid deadline. It is after a long time that each of the shortlisted contenders – home-grown banks and global asset management firms – in the fray has tied up with a private equity firm.

Sundaram Mutual Fund has partnered Carlyle, while Invesco and Warburg Pincus have created a consortium for the potential ₹5,000 crore buyout, the people add. Bandhan Bank and a promoter entity have GIC of Singapore, which is also a co-investor in the bank along with Temasek.

Carlyle, TPG, IndusInd, Warburg and Bandhan declined to comment. Mails sent to GIC, IDFC AMC, Invesco and Sundaram remained unanswered at press time on Sunday.

In September last year, the boards of IDFC and IDFC Financial Holding Company ratified a proposal to divest the mutual fund business, IDFC Asset Management.

Last December, IDFC First Bank set the ball rolling for the process of merging IDFC and IDFC Financial Holding Company with it. Both entities are part of the bank’s promoter group. Citigroup was roped in and is running a formal process to find a buyer for the MF business, sources said.