Axis Bank formerly known as UTI Bank has obtained the Reserve Banks permission to launch its the mutual fund business. Permission from SEBI the market regulator is still under process. The move is interesting as Axis Bank is one of the descendants of the former bank Unit Trust of India (UTI). Among others, the banks funds will be competing for investors attention with those run by UTI Mutual Fund, which is the inheritor of the Unit Trusts mutual fund business. The new company will be a wholly owned subsidiary of the bank and will carry out asset management, advisory and related services, said Asok Kumar, executive director of the Mumbai-based bank. The fast growth and higher margins in Indias asset management segment are attracting several foreign and domestic players. The segment has grown 47% year-on-year (y-o-y) between 2003 and 2007 in India, according to a study in March by consultancy firm McKinsey and Co.
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