Financial Daily from THE HINDU group of publications
Saturday, Sep 20, 2003
Financial Daily from THE HINDU group of publications Saturday, Sep 20, 2003 |
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Markets
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Mutual Funds ABN Amro rules out buyouts to grow in MF business Our Bureau
Bangalore , Sept 19 ABN Amro Bank has ruled out any option to buy-out existing fund managed by a local asset management company to grow its business in the mutual fund segment where it plans to foray in the last quarter of the current financial year. "There is no perspective on buying", Country Representative, Mr Romesh Sobti, said. Moreover, the bank said that it was not eyeing any portfolio take-outs to boost its retail portfolio. "We have seen steady growth year-on-year", Mr. Sobti said. The bank reported a net profit of Rs 146 crore in the last fiscal over a total business of Rs 10,000 crore. The focus would be on retail and the bank plans to move into private banking and asset management as future boosters. The proposed asset management company, in which ABN Amro will hold 75 per cent stake and resident shareholders would hold the rest, would undertake asset management, portfolio management, investment management and advisory services, investment research and financial consultancy services. ABN Amro has already approached the Foreign Investment Promotion Board (FIPB) to seek approval for the new company. It was reported that ABN Amro indicated that it would initially make an investment of $5 million towards its asset management operations. The banking group already had government approval to undertake the MF business through ABN Amro Securities India Pvt Ltd when it was granted permission to act as a primary dealer in 1998. The bank, whose non-performing assets are less than one per cent to its total asset, would not consider selling off such bad loans to specialised agencies, which could turn them around. "Our strength is in risk management", Mr. Sobti said, adding that such sell-out proposal is not viable as the amount of bad loans were small.
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