Financial Daily from THE HINDU group of publications
Tuesday, Apr 06, 2004
Financial Daily from THE HINDU group of publications Tuesday, Apr 06, 2004 |
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Money & Banking
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Public Sector Banks Markets - Mutual Funds Marketing - Channels and Franchises Allahabad Bank to vend UTI-MF products Our Bureau
Mr M. Damodaran
Kolkata , April 5 UTI Mutual Fund has tied up with Allahabad Bank for distributing its schemes, the fourth bank in the country with which it has entered into a strategic arrangement. The Kolkata-based bank will offer the entire range of funds managed by UTI MF. Announcing the deal here, Mr M Damodaran, CMD of UTI Asset Management Co, said the deal would enable the fund house to reach out to more retail investors, especially those who are located in the eastern part of the country. Allahabad Bank, which has about 15 million depositors, will use 150 branches for distributing UTI products. "We would like to inform the bank's customers that we are the country's largest fund manager, complete with a retail focus and transparent systems," he told newspersons. UTI, incidentally, has similar distribution arrangements with Bank of India, Corporation Bank and Indian Bank. UTI is also looking at expanding its agency network and augmenting its asset base. The latter now stands at about Rs 21,000 crore. This is expected to increase substantially in the course of the next financial year, Mr Damodaran said. The 140-year old Allahabad Bank, which has turned around in recent times after being in trouble in the early 1990s, has lately increased its focus on retail business, said Mr O N Singh, CMD, adding that the bank had been serving a large number of middle and lower-middle class households. It has also developed a substantial base of low-cost deposits. "We are gearing up to increase our fee-based income from alternative avenues. The bank has already entered into distribution deals with insurance companies. Our latest tie-up with UTI will help us meet the growing financial needs of customers," Mr Singh noted.
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