Mahabank in MF distribution pact
Bank already offers insurance products
| The bank will initially make available the mutual funds from the Franklin stable through 200 of its select branches and roll the offering over to other branches in the next year, M D Mallya, Mahabank chairman, said. |
| "The pact with Franklin is part of the bank's two-pronged strategy of laying more stress on the fee-based income and to offer an array of financial services to the customers at one point," Mallya said. |
| The bank has already started offering insurance products under MoUs with Life Insurance Corporation and United India Insurance Company. |
| "Mahabank wants to be among the top three banks in the country as far as these three fee-based businesses were concerned," Mallya said. |
| He said the bank expects to garner a fee of Rs 1 crore from mutual funds distribution business by the end of the current financial year. The bank may also sign similar agreements with other mutual funds depending upon the comfort level on either side. |
| Franklin Templeton India president Vivek Kudva said the fund chose Mahabank as its distribution partner because of the bank's wide reach through its branch network as well as the depth of its relationships with the customers. |
| Banks are an important channel for mutual funds mobilisation, said Kudva pointing out that nearly 30 per cent of Franklin Templeton's investments come through the banks channel. |
| "We are working with many other banks for distribution of our products and consider it an important vehicle to reach our goal of becoming a household name in India," Kudva said. |
| The fund, according to him, is awaiting Securities and Exchange Board of India's clearance for the prospectus it has filed for an investment scheme to protect the investors' capital. |