Friday, August 7, 2009

Canara-Robeco JV set to tighten grip on MF biz

Canara Robeco Mutual Fund, a joint venture between Canara Bank and Robeco of Netherlands, is all set to utilise the reach of its parent company with 500 trained bank staff in branches across the country.
Canara Bank, over the past two months, has hired 300 individuals and trained them along with 200 existing employees to be able to sell mutual funds through a certification by Association of Mutual Funds of India (AMFI).
"It will take some time to fully utilise the network of Canara Bank as we would need to train the employees and as of now 500 persons across the country are ready to sell mutual funds," said Rajnish Narula, CEO, Canara Robeco Mutual Fund.
This is only the second joint venture (JV) other than SBI mutual fund that has a joint venture where the Indian partner has the majority stake.
The JV is looking to expand more through their partners and will limit its branch expansion from an existing 23 branches to 30 branches in the next three years.
"We are looking to expand our branch network only into cities which are of strategic importance and for a deeper penetration we will rely
more on the distributors," said Narula.The joint venture that was formed in March 2007 has seen a significant growth in terms of the assets under management (AUM).
The AUM has grown from Rs 2,185 crore in March 2007 to Rs 7,624 crore in June 2009.
Canara Robeco also feels that it has gained some mileage over the past two years in terms of its acceptance.

No comments: