Business Daily from THE HINDU group of publications
Saturday, Oct 06, 2007
ePaper
Business Daily from THE HINDU group of publications Saturday, Oct 06, 2007 ePaper |
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Money & Banking
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Public Sector Banks Markets - Asset Management Companies
New joint venture: Mr Dario Frigerio (left), Global CEO, Pioneer Investments. and Dr Anil K. Khandelwal, Chairman & Managing Director, Bank of Baroda, at a press conference tohe in Mumbai on Friday. — Shashi Ashiwal Our Bureau Mumbai, Oct. 5 About five years after it ended operations in India, Pioneer Investments has tied up with Bank of Baroda for asset management. The group, which has presence in 25 countries, will take 51 per cent in Bank of Baroda’s existing asset management company. Addressing the press, Dr A.K. Khandelwal, Chairman and Managing Director, Bank of Baroda, said the new venture would help the bank boost its fee income and the operations are likely to start in June 2008. The bank is hoping to capitalise on Pioneer’s domain knowledge and technical expertise. BoB will bring the advantage of its wide branch network to the joint venture, Dr Khandelwal added. The bank would continue to sell products of other asset management companies through its branches, he said. Mr Dario Frigerio, Chief Executive of Pioneer Global Asset Management, said that over 60 per cent of Pioneer’s business comes from group banks and the company advises them to sell products of other banks. The joint venture would first offer products of Indian origin and later bring international investment opportunities to the Indian market. Pioneer Investment had Asset Under Management worth €229.4 billion, as on August 31, 2007. BOB Asset Management Company has an AUM worth only about Rs 150 crore, said a senior official of the bank. When asked about the failure of Pioneer’s earlier joint venture in India, in the form of Kothari-Pioneer AMC, Mr Frigerio said it could not survive because of the tough market conditions prevailing in the early 1990s. Pioneer’s first entry into India was in 1993, with a joint venture with Chennai-based Shyam Kothari family. But the ownership changed hands when the AMC was acquired by TCK Finance and later when Pioneer was acquired by the Italian Bank, UniCredito Italiano. In 2002, the AMC was acquired by Franklin Templeton. An official of Bank of Baroda also said that at that time the Pioneer group was consolidating its overseas acquisitions and could not focus on its Indian operations. More Stories on : Public Sector Banks | Asset Management Companies
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