Business Daily from THE HINDU group of publications
Friday, Mar 14, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Friday, Mar 14, 2008 ePaper | Mobile/PDA Version |
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Money & Banking
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Alliances & Joint Ventures Markets - Mutual Funds Web Extras - Channels and Franchises Manish Basu Kolkata, March 13 United Bank of India is tying up with Kotak Mahindra to sell mutual funds. UBI currently has tie-ups with five asset management companies, including UTI, HDFC, Franklin Templeton, Reliance and ICICI Prudential for selling mutual fund schemes. “The tie up with Kotak Mahindra has been finalised and we will sign an MoU with them within two-three weeks. We will ink similar deals with four other companies shortly,” Mr Swapan Biswas, General Manager, (Marketing and New Initiatives), told Business Line here on Thursday. In addition to mutual funds, UBI is also selling insurance policies as part of its drive to boost non-interest income. Health insuranceAt a function here, Mr P.K. Gupta, CMD of United Bank of India, announced the tie-up with Tata AIG Life to launch a new health insurance package ‘United Health Solutions’ that will be sold at all its branches across the country. The bank had earlier tied up with Tata AIG to market child insurance policies and will together launch pension policies soon, he said. “With Net Interest Margins declining, unless we raise non-interest income, it will hurt our bottomline,” Mr Gupta said. The bank has been achieving year-on-year growth of over 45 per cent from this segment, he said. Selling mutual funds and insurance policies through third-party companies constitutes UBI’s non-traditional non-interest income. “We are looking at this segment to contribute 10 per cent of the total non-interest income by next fiscal,” Mr Gupta said. Currently, UBI’s business from mutual fund and insurance schemes is estimated to be around Rs 14.5 crore, which is about 5 per cent of total non-interest income. However, the bank will focus on its mutual fund businesses in the coming days with greater vigour, Mr Biswas said. The bank is also looking at bringing down its gross and net NPAs from 3.9 per cent and 1.3 per cent in December 2007 to 2.5 per cent and 1.15 per cent by March 2008, Mr Gupta said. More Stories on : Alliances & Joint Ventures | Mutual Funds | Channels and Franchises
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