TATA Mutual Fund signs pact with South Indian Bank

Kochi, Jun 25 (UNI) TATA Mutual Fund has entered into a strategic tie-up with Thrissur-based South Indian Bank for distribution of its funded schemes through the bank's 450-odd branches in the country.

Talking to reporters here today after signing the agreement, Tata Asset Management Chief Executive Officer Ved Prakash Chaturvedi said it was the first time Tata Mutual Fund had entered into a tie-up with a bank in Kerala for distribution of its products.

'This initiative will add value to TATA Mutual Fund's network and complement its growth strategy,' he added.

Mr Chaturvedi said Tata Asset Management presently had more than Rs 12,000 crore assets and one million investors. 'We hope to make it ten million investors in another three to five years,' he added.

South Indian Bank Chairman and CEO V A Joseph said the bank had initially identified 200 branches across India to offer mutual fund products to investors.

The bank, which had earned Rs three crore through sale of mutual funds and allied products last year, was hoping to increase its revenue to Rs ten crore this year.

The bank was also planning to start online brokering services in the next two to three months, he added.

On the recent volatility in the equity market, Mr Chaturvedi said for long-term investments, the stock market gave a good opportunity for returns compared to other savings and investment plans.

On synergy between banks and mutual funds, he said in the US, the mutual fund and banking sectors were almost on par and in India the banking sector was ten times bigger than the mutual fund industry.

There was great potential for the latter to grow in collaboration with banks, he added.

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