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Union Bank to Enter MF Business

The bank is awaiting SEBI clearance

The mutual funds industry quickly climbing out of the morass of late 2008 to show some extremely good results has given financial entities waiting in the wings for a chance to share in the pie, the perfect reason to step into the business.

Among those that are awaiting a nod from the Securities and Exchange Board of India to start their own asset management companies is the Union Bank of India in partnership with Belgium’s KBC Group, with the Indian entity holding a 51 per cent majority stake.

Expectations are that the business will be up and running sometimes later in the year.

Explaining the massive growth strategy planned for the bank, the Chairman of Union Bank, M V Nair said, “UBI will be a financial powerhouse.”

Union Bank already has a presence in the insurance industry in partnership with Japan’s, Daiichi and Bank of India – Star Union Daiichi.

The partnership with KBC Group will bring to the bank mutual fund expertise, while the bank itself will offer it nation-wide reach to distribute it.