Union Bank of India (UBI) and Belgium-based KBC Asset Management will invest euro 50 million (about Rs. 302.42 crore) in their proposed joint venture asset management company, a top official said.
The joint venture, Union KBC Asset Management, has received in-principal approval from market regulator Securities and Exchange Board of India (SEBI).
“The total capital investment in the joint venture will be euro 50 million. It will be the best-capitalised company in India,” KBC Group Chief Operating Officer Danny De Raeymaeker told reporters here on Friday at the formal inauguration of the head office of the newly-formed company. The joint venture would have Union Bank of India as the major stakeholder with 51 per cent while the balance would be with KBC Asset Management.
“We have received an in-principal approval for the proposed mutual fund joint venture and the final approval will be received in the next 4-5 months,” Union Bank CMD M. V. Nair said.
The company would have a dedicated sales force of 500 people who would be placed in an equal number of branches of Union Bank, Mr. Nair said. The company would be leveraging the reach of Union Bank for selling mutual fund products, he said.
“We have our branches but will also tie-up with other banks for distributing our products,” Mr. Nair said.
The newly-formed joint venture would offer capital protected investment funds and open-ended equity funds. “We will be offering innovative and structured products,” Union KBC Asset Management's Chief Executive Officer G. Pradeepkumar said.