Sundaram Mutual in pact with IOB

By Our Markets Bureau | 25 Feb 2005

Chennai: Sundaram Mutual Fund (SMF) has signed a new distribution agreement with Indian Overseas Bank (IOB) that will see the latter distribute the entire range of SMF's products through select branches.

IOB operates 1,700 branches throughout the country with over 60 per cent of these situated in the southern states.

"A bank has phenomenal reach and trust with the average retail investor. Retail is the way forward for our business. We hope this initiative will help us broaden our retail presence," said T P Raman, managing director of SMF, speaking on this occasion.

The fund will be imparting training to IOB staff in the distribution of mutual fund products. IOB, in turn will use in-house IT to provide customer service.

"Banks have to explore new means to augment their non-interest income. We would like to move towards delivering complete financial solutions to our customers. We chose Sundaram Mutual as our partner because we are confident about the quality of their products, given the backing of the reputed Sundaram Finance group," said S C Gupta, chairman and managing director of IOB.