Union Bank of India, a leading Nationalised Bank in India and KBC Asset Management, the globally active asset manager of the Belgian KBC group, formally inaugurated Head Office of their proposed Joint venture Mutual Fund, which is in the process of receiving SEBI Approval, in which they have stakes of 51% and 49%, respectively. The Head Office of the JV Asset Management Company will be situated in Piramal Towers, Lower Parel (West), Mumbai.
His Royal Highness Prince Philippe of Belgium inaugurated the Head Office of the Joint venture in presence of Mr. M.V. Nair, Chairman & Managing Director Union Bank of India & Mr Danny De Raeymaeker, COO, KBC Group. His Excellency Jean M Deboutte, Ambassador of Belgium, was also present during the event.
Mr M. V. Nair, Chairman & Managing Director, Union Bank of India said:
"The asset management industry in India is an example of the success of free competition in the country. From an industry that had one dominant player in the early 1990s, there are now over 30 active players, reflecting as to how the world of asset management in India has changed. In the past couple of years, the asset management industry has seen more movements, more growth and perhaps more new entrants than any other sector. Today, it is an industry of choice for customers and employees, with a range of products available, the presence of almost every large global player and a growing focus on investor education. It is also a highly dynamic industry, where significant changes take place consistently. Current penetration levels just indicate the vast untapped potential. "
Mr Danny De Raeymaeker, COO, KBC Group: “KBC is looking forward to working together with a strong local partner like Union Bank. KBC Asset Management hopes and is convinced that its extensive knowledge of the fund market, especially its expertise in capital-protected investment funds for retail customers, and its coaching model, that already has proven to be successful not only in Belgium but also throughout Central and Eastern Europe, will make a valuable contribution to the joint venture. Together with UnionBank of India’s knowledge of local investors and its extensive network of branches and service points, this will represent the perfect blend of ingredients to create a strong asset management company for retail and corporate / institutional investors in India”
The AMC has a vision to be among the Top 10 AMCs in India over a medium term period of 5 years and Top 5 AMCs in India over a long term period of 10 years. During its journey, it will target an average Asset Under Management (AUM) of about Rs 12,000 crore by Year 3 of operations, a market share of 3% at the end of 5th Year in operations and achieve break even by Year 5 of operations.
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About Union Bank of India:
Union Bank of India is a large public sector Bank with global presence and has over 5,000 outlets in terms of branch and ATM, offering the best of technology and branch banking convenience. The Bank through a transformation journey over the last two years has brought in far reaching changes in product, process and technology with an aim to become the bank of first choice in terms of customer experience. In pursuit of its goal to become a financial supermarket, the Bank has entered different segments of financial product and services both in corporate and retail banking, including loan syndication and Life Insurance. The Asset Management Joint Venture is a logical extension of the Banks vision to emerge as a leading player in the financial supermarket.
At the end of December 2009, the Bank had a Total Business Mix of Rs 257,619 crores. Its Total Deposits amounted to Rs 151,085 crores, while Gross Advances were at Rs 106,534 crores The Bank's Net Profit for the Qtr ended December 2009 was Rs. 534 crores. The Gross NPA was 1.96 %, while the Net NPA came to 0.58 %. The Capital Adequacy Ratio for the Bank stood at 13.46 % at the end of December 2009. Union Bank of India is one of the first Public Sector Banks in India to set up a separate division to undertake distribution of third party products such as Mutual Funds and Insurance and has in the last seven years developed considerable marketing and cross selling capabilities in this area. Union Bank is also the first large Public Sector Bank in the country to have implemented 100% networking of branches. It has leveraged technology to offer a wide range of technology based products including Internet Banking and Mobile Phone Banking. It has also put in place other capabilities such as Lead Management Systems to enhance sales force management performance.
About KBC Asset Management NV (KBC AM): www.kbcam.be
KBC Asset Management is a 100% subsidiary of the KBC group and a leading Belgian asset manager It is mainly active on KBC’s home markets of Belgium and Central and Eastern Europe, but also has two long term growth options in the emerging markets of China and India.
Figures provided by the Belgian Asset Managers’ Association (at September 2009) show that KBC Asset Management leads the field in Belgium, with a market share of 39.1%% and a market share ad 58.9 % for Structured Funds.
About KBC Group NV: www.kbc.comµ
KBC is a bancassurer that focuses on its home markets in Belgium and Eastern Europe (Czech Republic, Slovakia, Poland, Hungary and Bulgaria). KBC’s headquarters are located in Brussels (Belgium), the heart of Europe.
The KBC group employs around 57 000 staff and caters for 12 million customers.
KBC Group NV is listed on Euronext Brussels (ticker symbol 'KBC') and the Luxembourg stock exchange.