UTI MF and Corporation Bank today announced a tie-up for distribution of UTI MF's products. Corporation Bank will begin to offer the entire range of UTI MF's schemes through selected branches. This initiative reflects UTI MF's strategy to rapidly expand and value-add its access network to complement the Mutual Fund's growth strategy in the Indian mutual fund sector.
Presently, UTI MF through its wide range of mutual fund schemes meets the investment, savings and retirement planning needs of its investors primarily through its core Financial Advisors, a wide distribution network of 55 Financial Centers (UFCs) (this is set to increase to 110 UFCs in 2004), Direct Marketing, and through the 180 branches of Indian Bank across India. With this tie-up, UTI MF is further enhancing its distribution capabilities. India's largest Mutual fund will now also be offering its schemes through 70 branches of Corporation Bank across India.
Thus, UTI MF will be offering its entire range of mutual fund schemes to A wider segment of the investing public in addition to its more than 10 million (one crore) unit holding accounts - accounting for 85 per cent of the investor accounts of the Mutual Fund industry.
Announcing the UTI MF's tie-up with Corporation Bank, Shri. Meleveetil Damodaran, Chairman and Managing Director, UTI Asset Management Company said, "We are delighted to see overwhelming confidence in UTI MF from the retail investors of this country. In just under a year's time, UTI MF's Assets Under management (AUM) has galloped by over Rs 5,000 crores to cross the Rs 20,000 crore mark. UTI MF on its part too has lived up to the trust and expectations of its investors by handsomely rewarding them with rich dividends and a robust capital appreciation of their investments in our numerous schemes."
"With an intention of reaching out to more retail investors, today we are announcing our strategic alliance with Corporation Bank for distribution of our schemes. This tie-up will enable us to offer UTI MF's comprehensive range of mutual fund products to a wider segment of the society. It gives me great pleasure in saying that our strategic partnership with Corporation Bank has further endorsed our commitment to the retail investors of this country. We are confident that these efforts will further increase the retail investor participation in our various mutual fund schemes", Shri Damodaran added.
Shri Cherian Varghese, Chairman and Managing Director, Corporation Bank, said, "We are excited to announce Corporation Bank's strategic alliance with UTI MF for distribution of their mutual fund schemes. This tie-up is in-line with our philosophy to provide a complete range of financial solutions to investors. By tying-up with one of India's leading and largest mutual fund, we assure our customers and other investors a complete range of innovatively designed product." The Bank is in the forefront in offering value added and innovative products and services. The distribution of Mutual Fund products of UTI Mutual Fund is one more step in this direction.
"Thus, Corporation Bank has now become a truly one-stop financial services company where the bank in addition to offering banking and also insurance products and services, will now offer a comprehensive range of innovative investment and mutual fund products not just to its individual and corporate clients but also to a larger segment of the society all under one roof", Shri Varghese added.
This tie-up, in turn benefits customer's of Corporation Bank as they get access to the country's leading Mutual Fund's schemes closer to their doorstep. Thus, Corporation Bank's customers too get the opportunity of reaping rich dividends of UTI MF's schemes just like the 10 million (one crore) investors have been richly rewarded on their investments in MF schemes of UTI MF.
Shri Varghese also stated that the bank has already become the Composite Corporate Agent of LIC of India for selling Life Insurance products and General Insurance products of New India Assurance Company Ltd. Besides, Corporation Bank is also dealing in GOI Bonds, PPF Scheme, accepting Direct Taxes and also Central Excise and Service Tax in certain cities. It may also be recalled that Corporation Bank has recently enabled its customers to pay LIC premia through its large network of Online Interconnected ATMs across the country. Additionally, the Bank has become a member of Euronet thus enabling their customers to have an increased reach of over 2200 ATM's nationally. Soon, through Euronet, Corporation Bank will be able to provide pre-paid card refill facility through its ATM network for mobile phone users, Shri Varghese added.