Franklin Templeton ties up with Karnataka Bank

By Staff
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Google Oneindia News

Mumbai, Aug 2: Mutual Funds major Franklin Templeton Investments (India) has signed a memorandum of understanding (MoU) with Karnataka Bank, one of India's established private sector banks, for the distribution of its products.

Under the agreement, Karnataka Bank will distribute the entire range of Franklin Templeton funds through its branches across the country.

Speaking to reporters here today, Karnataka Bank Chairman and CEO Ananthakrishna said, ''Mutual Funds are rapidly gaining ground among retail investors due to the advantages of professional management, risk diversification, improved liquidity and tax effficiency.'' ''The signing of this distribution alliance with Franklin Templeton is in keeping with our objective of becoming a single-point financial supermarket, by offering a range of financial solutions under one roof. For us, this tie-up will open further opportunities to provide our vast client base wilth wider choice of products to meet their diverse financial needs and also give a boost to our fee- based income. We expect a substantial revenue contribution during the current year from the sale of mutual fund products,'' he added.

Franklin Templetion India President Vivek Kudva said: ''Given that mutual funds still constitute a minor portion of the household saving pie in India, we believe that future growth will depend upon the ability of asset management companies to garner a higher share of retail savings. The challenge facing the industry is how to expand the distribution network to semi-urban and rural areas, where many small investors live, in a cost-effective mannger. Leading private sector banks such as Karnataka Bank, with their extensive branch networks, can help us reach out to retail investors who currently do not have access to our products.''

UNI

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