Financial Daily from THE HINDU group of publications
Friday, Dec 30, 2005
Financial Daily from THE HINDU group of publications Friday, Dec 30, 2005 |
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Money & Banking
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Mergers & Acquisitions Markets - Asset Management Companies Marketing - Strategy UTI AMC plans to buy tech firm — Sponsor-banks to lend marketing support too Our Bureau
(From left) Mr A.K. Purwar, Chairman, SBI; Mr U.K. Sinha, MD & CEO, UTI AMC; Mr S.C. Gupta, Chairman, PNB; Dr Anil K. Khandelwal, Chairman, BoB; and Mr A.K. Shukla, Chairman, LIC, at the UTI AMC sponsor meeting in Mumbai on Thursday. - - Shashi Ashiwal
Mumbai , Dec.29 FUND house UTI Asset Management Company on Thursday announced plans to buy controlling stake in a technology company, set up its own call centre and own a distribution company as part of an aggressive strategy to grow its assets under management to Rs 62,000 crore by March 31, 2010. At present, its assets under management stand at Rs 25,000 crore. Announcing this after its first meeting with its four sponsors — State Bank of India, Life Insurance Corporation of India, Bank of Baroda and Punjab National Bank, Mr U.K. Sinha, Managing Director and CEO of UTI AMC, said the sponsors had also expressed their desire to run the AMC as a board-driven company with full autonomy in decision-making. The proposed plan to buy stake in a technology company was aimed at boosting its investor services and efficiency. "Sponsoring institutions assured co-operation in extending their distribution strength and full support of the parent organisation for reaching out to investors throughout the country," Mr Sinha said. Another major decision taken at the meeting relates to aligning its compensation with the industry benchmark. Further, AMC decided to continue with its policy of campus and lateral recruitment. On the proposed support from sponsors, Mr Sinha said in addition to the financial backing, the four PSU stakeholders had also extended their full support by allowing UTI AMC to utilise their branch network throughout the country for marketing its schemes. UTI AMC also plans to target NRIs and other overseas investors by launching offshore funds, which would invest in the Indian equity markets, Mr Sinha added.
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