Bank Of Rajasthan To Sell LIC MF Units

Mumbai, January 24: | Updated: Jan 25 2003, 05:30am hrs
Bank of Rajasthan Ltd (BoR) is to sell mutual fund products of LIC Mutual Fund (LICMF). A memorandum of understanding (MoU) to this effect is likely to be signed between BoRs managing director Kali Mohan Bhattacharya and LICMFs chief executive officer MR Murali on February 1.

BoR will have exclusive rights to sell LICMFs products in the state of Rajasthan and non-exclusive rights for the rest of the country. BoR already has a tie-up with Bajaj Allianz for distributing non life insurance products and with Birla Sun Life Insurance Co Ltd for distributing life insurance products.

The move is part of the banks effort to increase its fee based income.

To purse the same effort the bank also intends to set-up a insurance company in three years time, once the banks net worth reaches the Rs 500-crore mark.

BoR witnessed a 129 per cent jump in net profit to Rs 18.37 crore for the quarter ended December 31, 2002, as compared to Rs 8.01 crore for the corresponding period in the previous fiscal.

The banks net profit for nine months ended Dece mber 31, 2002, grew by 79.20 per cent to Rs 46.64 crore (Rs 26.02 crore).