Templeton-Karnataka Bank tie up for distribution of MF

Bangalore, Aug 2 (UNI) Franklin Templeton Investments today signed an MoU with private sector Karnataka Bank for distribution of its products.

Under the agreement, the bank would distribute the entire range of Templeton funds through its branches across the country.

Speaking after inking the pact, Karnataka Bank Chairman and CEO Ananthakrishna said the MoU was one of the steps taken by the bank to become a single-point financial supermarket by offering a range of financial solutions under one roof and give a boost to fee-based income of the bank. ''We expect a substantial revenue contribution during the current fiscal from sale of mutual fund products.'' Franklin Templeton India President Vivek Kudva said the future growth of mutual funds would depend on the ability of asset management companies to garner a higher share of retail savings. The challenge facing the industry was to expand the distribution network to semi-urban and rural areas in a cost-effective manner.

''Leading banks, including private sector banks like Karnataka bank, which had 398 branches across 19 States, can help Templeton reach investors who currently had no access to our products,'' he said.

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