Indian Bank to revive mutual fund arm; to rope in foreign firm

Indian Bank to revive mutual fund arm; to rope in foreign firm
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First Published: Sun, Jun 15 2008. 05 25 PM IST
Updated: Sun, Jun 15 2008. 05 25 PM IST
PTI
New Delhi: Indian Bank is planning to revive its mutual fund arm, IN Fund Management, to participate in the over Rs6,00,000 crore market.
“We are in the process of reviving the asset management business, the license for which was surrendered to SEBI a few years ago,” Indian Bank chairman and managing director M S Sundara Rajan told PTI.
Besides the Chennai-based bank is also considering to rope in a partner that could bring expertise in the sector, he said. “We are considering all options including roping in of a foreign partner who could bring on board fund management expertise.”
Although the license was surrendered few years back, a small amount is still under management.
Like other public sector banks, Indian Bank was also one of the early entrants into the asset management space. It started the fund house in the early 1990s.
However, the bank decided to merge its mutual fund arm with the banking operations in 2004, and surrendered registration certificate to the Securities and Exchange Board of India.
The fund house, which, had launched 12 close-ended schemes with a corpus of Rs627.10 crore had already redeemed nine schemes on maturity dates.
Some other public sector banks have also started the process of the revival of their mutual fund business. Bank of India, which had BOI Mutual Fund, is set to re-enter the space.
The Mumbai-based bank has already identified partners for a joint venture and would soon finalise the name.
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First Published: Sun, Jun 15 2008. 05 25 PM IST