[by Cerius Shah] This has happened sooner than expected. Close on the heels of Balakrishnan comments on indigenous venture capital funds, the State Bank of India’s subsidiary SBI Capital Markets plans to set up a Rs 400 crore ($100 million) fund to invest in knowledge-based sectors.

The India Knowledge Fund will target online and mobile businesses,  IT, knowledge process, nanotechnology and alternative energry (another under-funded sector which was addressed at the Esummit) with an initial investment size in the range of $3 million to $10 million.  The fund, according to this BS report, will be a 50:50 and co-managed JV between SBI Capital markets and the Japan based Softbank Investment holdings.