The Hindu Business Line : `State Bank, PNB, LIC interested in pension fund management'

STATE Bank of India, Punjab National Bank, Life Insurance Corporation, along with a number of private entities, are interested in foraying into pension fund management, according to Mr D. Swarup, Chairman, Pension Fund Regulatory and Development Authority (PFRDA).

He also indicated that about Rs 3,500 crore has been accumulated (since last year) under the new scheme for Central government employees - a corpus that now needs to be allocated more rationally.

This corpus, in fact, is set to increase progressively with each passing year. A few State governments have agreed to join the movement. Incidentally, a great number of people working for the government regularly came under the ambit of the scheme even as large-scale retirement and departure took place, he added. He was addressing a meeting organised by the Bengal Chamber of Commerce & Industry recently.

It is learnt that pension fund management outfits may be allowed to have a minimum capital base of less than Rs 100 crore, although no decision on the matter has been reached. Insurance companies are required to have a minimum base of Rs 100 crore in line with the current norms.

The market, it is pointed out, is at this stage keen to know more on a host of critical issues, including the central record keeping system and the kind of fund managers that will be allowed to operate in the country.

A number of changes will be brought about under the new dispensation, Mr Swarup said. Already, a large body of opinion has formed with regard to the continuity of PPF. The latter is marked by a relatively high rate of interest, a feature that has been favoured by the common people.

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