Principal Financial Group buys Vijaya Bank's 4 pct stake in Mutual Fund JV

Written by PTI | Mumbai | Updated: Jun 28 2014, 01:55am hrs
Principal Financial Group, USA today said it has acquired Vijaya Bank's 4.03 per cent stake in Principal PNB Asset Management Company and also the state-run lender's 5 per cent share in the trustee company.

Financial details of the acquisition were not disclosed.

The move is part of the global investment management firm's plan to meet market regulator Sebi's new minimum net worth norms.

"The investment is an important step prior to execution of our recapitalisation plans to meet Sebi's new minimum net worth norms. We are now ready to step up our expansion efforts and the move validates Principal's belief in the long-term growth potential of the mutual fund industry," Principal International (India) Country Head Rajan Ghotgalkar said.

With the completion of acquisition of Vijaya Bank's stake, Principal and Punjab National Bank have 70 per cent and 30 per cent shareholding respectively in the reconstituted mutual fund joint venture.