HDFC MF ties up with BoI

The bank will distribute mutual fund products.

HDFC mutual fund on Tuesday entered into a strategic alliance with Bank of India to distribute its products across India.

"Bank of India having over 2,600 branches has a reach which is quite unbeatable." said Milind Barve, Managing Director, HDFC Asset Management Company.

"Our aim is to enhance our retail customer base and reach out to "B" and "C" class cities, which are growing rapidly. The broad network of Bank of India would help us accomplish this objective by providing the necessary distribution platform." he added. HDFC already has a tie up with Union Bank and Canara Bank.

Prem Lal Gairola, Executive Director, Bank of India said: "On Tuesday banks are looking for fee-based income in a big way. This tie up is one more way to shore up fee-based income. Our fee-based income is rising at the rate of 17 to 18 per cent and we earn an income of around Rs 22 crore from selling third party products. "Bank of India also markets schemes of UTI and DSP Merill Lynch. Gairola added: "On Tuesday most of the mutual funds are concentrating on "A" class cities so we will enjoy a first mover advantage by concentrating on the "B" and "C" class cities."

"Initially we would offer the entire bouquet of HDFC mutual fund products at about 300 branches," said Gairola.