The Hindu Business Line : Union Bank joins Belgium co for AMC

Mumbai, Nov. 7 Union Bank of India and KBC Asset Management of the Belgium-based KBC group on Friday said they have signed an agreement to set up a joint venture asset management company in India.

UBI will have a stake of 51 per cent while KBC Asset Management will have a 49 per cent stake in the new company.

“This is indeed a good time to enter the mutual fund business,” said Mr M.V Nair, Chairman and Managing Director, UBI, at a news conference here on Friday. “The current mutual fund penetration levels are just 3 to 4 per cent, clearly indicating the vast untapped potential.”

Close to 500 persons will be employed in the joint venture, he added.

“We will file for SEBI approval, and later for approval for our schemes. It will take some seven to eight months for the launch of our first product,” said Mr Erwin Schoeters, Managing Director, KBC Asset Management N.V.

Capital protected funds could be an interesting answer in the current market situation, said Mr Schoeters.

KBC Asset Management has around 55 per cent market share in Belgian market for capital-protected products, according to a press release.

State-owned Union Bank of India has also announced plans for its first branch in the global diamond hub of Antwerp as it is expanding its overseas network by setting up representative offices in Australia, Oman, Canada and Indonesia. The bank has a representative office in Shanghai and a branch in Hong Kong.

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