The Hindu Business Line : 4 more pick up stake in UTI ARC

Mr Meleveetil Damodaran, Chairman and Managing Director, UTI AMC, said here that Standard Chartered Bank, Bank of India, Indian Bank and IL&FS had picked up 10 per cent equity each in Asrec India Ltd. While UTI holds 35 per cent of the equity capital, Life Insurance Corporation and Allahabad Bank hold the rest. He said the company had applied to the Reserve Bank of India for a licence.

Mr Damodaran was speaking to presspersons here after signing a marketing agreement under which Corporation Bank will sell UTI Mutual Fund's products on a commission basis. He said the bank "gives the right kind of complementarities that UTI MF is seeking". Its products will compete for shelf space with the plans of LIC MF, Standard Chartered MF and Reliance MF that the Mangalore-based bank already sells.

Mr Cherian Varghese, Chairman and Managing Director, Corporation Bank, said the bank chose to sell UTI products because investors were familiar with the name. Besides, the fund had proved its resilience over the past two years surviving the worst crisis in its history. Mr Varghese, however, added that the bank might enter into similar tie-ups with more fund managers.

UTI had recently signed a similar agreement with Indian Bank that augmented its own network of 55 `financial centres' with 180 branches of the bank. The tie-up with Corporation Bank will add another 70 points to its network. UTI, which manages investor assets worth about Rs 20,000 crore, plans to double its own distribution network by the end of the year.

Meanwhile, the asset manager had received regulatory approvals to launch its portfolio management scheme and six thematic plans, Mr Damodaran said.

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