Canara Robeco gets regulatory approval for MF business

Written by Banking Bureau | Mumbai, Sep 26 | Updated: Sep 27 2007, 06:27am hrs
Canara Robeco, a joint venture between Canara Bank and Robeco Groep N V (Robeco) has received regulatory approvals from the SEBI and the RBI to commence operations. The new entity was formally announced at a board meeting on Wednesday. Rajnish Narula has been appointed as the chief executive officer of Canara Robeco.

Canara Bank retains 51% stake in the company while 49% will be held by Robeco. With the plans to re-brand the new entity, Canara Robeco will launch their new funds later this year. Canara Robeco, aims to position Canara Banks existing asset management arm, Canbank Investment Management Services Ltd (CIMS), into an industry leader.

Canara Bank and one of the largest European asset managers, Robeco, had entered into a Memorandum of Understanding in March 2007 to undertake the asset management business in India. M B N Rao, chairman and managing director, Canara Bank, said, Given the core competencies of both partners I am confident that these strengths will result this joint venture developing into a top 10 player in a relatively short period of time.

George Mller, chief executive officer of Robeco said, This latest development further confirms our global focus and commitment towards India. Robeco is a leading international asset manager, headquartered in Rotterdam, Netherlands, with around 1,500 employees in 9 countries. It provides investment products and services to around 700 institutional and 1.5 million private clients worldwide. Founded in 1929, Robeco has been fully owned by Rabobank since 2001. Robeco is ranked amongst the worlds top twenty most successful asset managers, with all its three flagship funds awarded 4 stars by the international mutual fund rating agency, Morning Star.