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Saturday, Feb 23, 2002

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Corpn Bank to sell LIC Mutual products

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Mr A. Ramamurthy (left), Chairman, Jeevan Bima Sahayog Asset Management Company, with Mr Cherian Verghese, Chairman & MD, Corporation Bank, at a press conference in Mumbai on Friday.

MUMBAI, Feb. 22

CORPORATION Bank has tied up with LIC Mutual Fund to market the fund's products through its branches. The bank signed a memorandum of understanding with LIC Mutual Fund (LICMF) for distributing MF products on Friday.

The arrangement will initially cover four open-ended schemes — LICMF Bond Fund, LICMF G-Sec Fund, Dhanaraksha-89 and LICMF Children's Fund.

LICMF has a corpus of Rs 2,400 crore and manages eight close-ended and eight open-ended schemes. It had mobilised around Rs 4,000 crore as on January 31, 2002.

Addressing a press conference here on Friday, the Chairman and Managing Director, Corporation Bank, Mr Cherian Verghese, said the bank would capitalise on the business synergies achieved through these alliances.

The MoU is part of the strategic alliance which the bank had entered into with LIC last year. Under the tie-up, LIC acquired 27 per cent stake in the bank.

In keeping with the alliance, LIC is picking up 20 per cent stake in the bank's primary dealership arm — CorpBank Securities — through a preferential allotment, taking the paid-up equity capital to Rs 125 crore from the existing Rs 100 crore.

"LIC will also be offering the employees, depositors and creditors of CorpBank Securities `group term assurance' where the insurance cover will work out to Rs 25,000 at a cost of Rs 10-12 per month,'' said Mr A. Ramamurthy, Managing Director and current Chairman in-charge of LIC and the ex-officio chairman of Jeevan Bima Sahayog Asset Management Company Ltd.

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