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Mr R.V. Shastri, Chairman & Managing Director, Canara Bank (left), with Dr N.K. Thingalaya, Director, at the launch of Canbank Mutual Fund's `Can Short Term Plan' and `Can Equity Diversified Scheme' on Thursday in Mumbai. — Shashi Ashiwal

Mumbai , Aug. 28

CANBANK Mutual Fund today launched the Can Short Term Plan and the Can Equity Diversified Scheme.

Can Short Term Plan targets investments from corporates, financial institutions and other investors seeking low risk returns with an investment horizon of around three to six months.

Can Equity Diversified Scheme aims to provide an opportunity to retail investors seeking higher returns commensurate with the risk tolerance with an objective of investing in diversified portfolio of equities, said, Mr N.R. Ramanujam, Managing Director, Canbank Mutual Fund, addressing a press conference here today.

The schemes will open for initial public subscription on August 29 and will close on September 12 and will open for continuous sale and repurchase from September 17at NAV-related prices. Canbank Mutual Fund currently manages assets of over Rs 1,550 crore catering to 2.40 lakh investors.

Speaking to press persons at the sidelines of the conference, Mr R.V. Shastri, Chairman and Managing Director, Canara Bank, said, the bank proposes to cross sell mutual funds products at 50 designated branches in the country from November this year. The bank has decided to sell mutual funds products of not only Canara Bank but also of other banks, he added.

Mr Shastri said, the bank has been focusing on growth of retail financing which is currently around 32 per cent of total advances. "This is going to increase to 40 per cent out of the total credit portfolio of Rs 8,000 crore during the current fiscal year," he said.

The bank will consider a second public issue in November after the stipulated lock-in period of one year ends in October. The bank had raised Rs 110 crore capital from its IPO last year. It had also returned a capital of Rs 277 crore to the Union Government. At present, the Government's equity holding in the bank is around 73 per cent.

The bank is also considering returning Rs 100 crore worth capital to the Government but is waiting for clarity on whether it will be at a premium or at par, according to Mr Shastri.

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