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Friday, Feb 15, 2002

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BoB MF unveils 3 debt schemes

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BoB Mutual Fund, which has around Rs 30 crore of total assets under management, has also received approval for the BoB Growth Fund and the BoB Balanced Fund, which are likely to be launched in a few months.

Mr P.S. Shenoy (right), Chairman and Managing Director, Bank of Baroda, with Mr B. Krishna Kumar, Managing Director, BoB Asset Management Co Ltd, in Mumbai on Thursday.

MUMBAI, Feb. 14

BOB Mutual Fund has launched three new open-ended debt related schemes — BoB Income Fund', `BoB Gilt Fund' and `BoB Liquid Fund'.

The income fund is designed to generate regular income by investing in a portfolio of quality, fixed-income instruments, while the corpus of BoB Gilt fund would be invested in Government securities. BoB Liquid fund plans to generate income with a high level of liquidity by investing in portfolio of money market instruments and debt securities up to one-year maturity, company officials said.

At a press conference held here, Mr P.S. Shenoy, Chairman and Managing Director, BoB, responding to questions as to whether it was the right time to enter the market with a debt fund, said, "We believe that the debt market rally may not yet have ended and the overall economic scenario is indicative of a lower interest rate regime''.

The initial public offer for BoB Income fund and BoB Gilt Fund closes on March 5 and for BoB Liquid Fund on February 18. Minimum application amount is Rs 2,000.

Mr Shenoy, said that BoB Income Fund and BoB Gilt Fund are also offered to NRIs, particularly in the UAE and Oman, where Bank of Baroda has a network of branches.

The company, which at present has around Rs 30 crore of total assets under management has also received approval for two more schemes, namely BoB Growth fund and BoB Balanced fund, which are likely to be launched in a few months time, he said. Bank of Baroda (BoB) is appointing a consultant to conduct due diligence on Benaras State Bank for amalgamation with it. The consultants are a Chennai based Chartered Accountant firm and the amalgamation is likely to be completed by April this year. The bank is on the look out for a strategic partner for BoB Mutual, however there are no immediate plans in this regard, he added.

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