State-owned, Union Bank of India has received the approval from the Securities and exchange board of India to start its joint venture mutual fund company with Belgium-based KBC Group. 
The JV--Union KBC Asset Management Company-- expects to roll out its first MF product in the market as early as February, 2010. 
The JV partners are currently presently on the look out for a Chief Executive Officer (CEO) to run the new entity, a top UBI official said. 
"We have received in-principle nod from Sebi to set up the MF company. The process to select a CEO and designing the product-portfolio is currently underway," Union Bank's General Manager, Transaction Banking and Third Party product Department, Pravin K Bansal told PTI here. 
Union bank will have a 51 per cent stake in the joint venture-- while KBC will hold 49 per cent stakes. Union Bank plans to invest Rs 48.07 crore in the JV by December while KBC will contribute Rs 46.93-crore, Bansal said. 
Union Bank expects to benefit from the vast experience of KBC in the global mutual fund industry and plans to use its 2,700 branches for the service roll out, he said.
Union bank has also decided to change at least 200 branches as dedicated centres to sell the mutual fund products. KBC, which is making its entry into the domestic market through this JV, is one of the largest MF players in Belgium.
The company has assets under management worth Euro 174 billion as on end-2007. The JV partners are also working to pump in more capital to the new entity in the near future, Bansal said. 
"We may pump in more capital to the JV and the details of further capital infusion will be worked out by the end of this month," Bansal said. 
The state-owned lender has entered into an agreement with Belgium-based KBC Group for the mutual funds JV in November last year. Union Bank is one of the largest public-sector banks in the country and has targeted to achieve a total business of around Rs 3-lakh crore by the end of this fiscal. 
The bank would also step up its branch strength to 3,000 by March.

State-owned, Union Bank of India has received the approval from the Securities and exchange board of India to start its joint venture mutual fund company with Belgium-based KBC Group. 

Union Bank gets Sebi nod to set up mutual funds business

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Home / News / India News / Article / Union Bank gets Sebi nod to set up mutual funds business

Union Bank gets Sebi nod to set up mutual funds business

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