UTI Mutual Fund In Distribution Tie-up With Corporation Bank

Mumbai, Jan 29 | Updated: Jan 30 2004, 05:30am hrs
In an effort to accelerate its retail initiatives, mutual fund behemoth UTI Mutual Fund (UTI MF), on Thursday, announced a strategic tie-up with Corporation Bank to distribute all its schemes across 70 select branches of the bank across India.

M Damodaran, chairman and managing director (CMD), UTI AMC, while addressing media persons harped on the focus of the asset management companys (AMC) focus on retail investors and said, We at UTI MF have been overwhelmed by the confidence that the retail investor has shown in us. In order to reiterate our commitment to the retail investor, we are making an effort to expand our reach via a strategic partnership with Corporation Bank. This tie-up will enable us to offer our comprehensive range of products to a wider segment of the society.

Cherian Varghese, CMD, Corporation Bank, who jointly addressed the press meet said, By tying up with UTI MF, the leading fund house in the industry, we have made an attempt to become a one-stop financial shop to our customers. In addition to banking services and insurance products, we will now offer a range of innovative MF products to our clients.

Speaking about the completion of UTI MFs year-long journey in the industry a couple of days from now, Mr Damodaran assured that the AMC has several targets for significant growth going ahead.

I ASREC has roped in new investors including Bank of India, Standard Chartered Bank and has also made an application to the Reserve Bank of India to run the company.

We are in the process of receiving approval for six thematic schemes that we have lined up. In all probability, the first to hit the block would be a fund dedicated to the automobile sector, a pioneer in the industry. We are also in the process of finalising our portfolio management services.

On the sidelines of the press meet Mr Damodaran spoke of the UTI MF promoted ASREC India ltd, an asset reconstruction company. ASREC has roped in new investors including Bank of India (BoI), Standard Chartered Bank and has also made an application to the Reserve Bank of India to run the company.

Apart from Life Insurance Corporation, which holds 10 per cent stake, ASREC will have new investors IL&FS Ltd, Indian Bank and Standard Chartered Bank with 10 per cent stake each, Mr Damodaran informed.

UTI MF, which now holds 35 per cent stake in ASREC, is ready to lower its holding to 25 per cent to accommodate new partners, Mr damodaran also said.