The Hindu Business Line : `UTI Mutual stake won't be sold to a single entity'

Dr R.H. Patil (left), Chairman, UTI AMC Pvt Ltd, and Mr M.V. Nair, Chairman & Managing Director, Dena Bank, at a press conference to announce the tie-up between UTI Mutual Fund and Dena Bank in Mumbai on Monday. - - Shashi Ashiwal

Mumbai , Sept. 12

THE Union Government has decided that the entire stake of UTI Mutual Fund would not be sold to one single entity, said Dr R. H. Patil, Chairman, UTI AMC. Details of the stake sale are likely to be finalised in two months.

It has so far been speculated that State Bank of India (SBI) is likely to buy out the other three sponsors of the fund house. All the four sponsors of UTI AMC — SBI, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda — had evinced an interest in acquiring the country's largest fund house.

Now, with the decision to not accept the highest bidder among the four, it is likely that all four sponsors would be asked to share the acquisition of the asset management company.

UTI Mutual Fund's assets under management have crossed the Rs 25,000-crore mark. Dr Patil said that they would close this month at Rs 26,000 crore. "This indicates that UTI has gained back its credibility in two years," he added.

Dr Patil was speaking to newspersons after announcing a strategic distribution tie-up of UTI MF with Dena Bank. The agreement between the two companies allows Dena Bank to offer the entire bouquet of UTI MF's schemes across the bank's selected branches.

"To begin with, 80 branches of the bank will offer mutual fund products. Our target for the first year is to sell UTI products worth Rs 590 crore.

On the first day of launching the service, we had 25 investors with Rs 11 crore," said Mr M. V. Nair, Chairman and Managing Director, Dena Bank.

Though the bank currently has no other tie-ups with AMCs for the distribution of funds, in case customers want other options, they can tie up with other fund houses, he added.

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