IOB plans to sell Rs 600 cr MF products

Indian Overseas Bank (IOB) expects to sell about Rs 600 crore of mutual fund products with its mutual fund partners during the current year.

Addressing a press conference on the IOB signing an agreement to distribute Principal PNB Mutual Fund products, T S Narayanasami, CMD, IOB, said that around 500 officers were trained to sell mutual fund products and another 300 staff will be trained by end of the month.

The bank will earn two per cent as fee based income in selling mutual funds products which is about Rs 12 crore.

He pointed out that it is usually conceived that mutual funds are a threat to banks, funds mobilised by mutual fund company was Rs 71, 900 crore while banks deposits had garnered about Rs 16 lakh crore as on April 30, 2005.

IOB entered into a tie-up with Sundaram Mutual Fund early during this year and plans to enter into partnerships with Cholamandalam Mutual Fund, Tata Mutual Fund and Franklin Templeton Mutual Fund in a month's time.