IOB to distribute Franklin Templeton mutual fund products
24 Aug 2005
New
Delhi:
Franklin Templeton Investments (India) and Indian Overseas
Bank (IOB)have signed a MoU with one of India's established
public sector banks for distribution of its products.
Under the agreement, IOB will distribute the entire
range of Franklin Templeton funds through its branches
across the country and overseas.
According to T S Narayanasami, CMD, IOB, " The
tie-up is in line with the bank's twin objectives -
providing best-in-class solutions to our large and growing
client base, and to enhance the fee-based activities
for the bank." IOB will also sell the mutual fund
schemes through its overseas branches catering to NRIs
across the world.
Narayanasami expects a turnover of around Rs600 crore
in mutual fund distribution in the current year. "We
have been tying up with various fund houses in the country
in this regard and we are excited about the prospects
of this initiative with Franklin Templeton, who are
one of the leaders in the mutual fund industry,"
he adds.
Mutual fund products have been gaining acceptance over
the last few years, as more and more investors recognise
the advantages that professional management brings to
their investments. Given the reach of domestic banks
and their need to widen product offerings to their customers
in a competitive market, it is a win-win situation for
both mutual funds and banks.
Says Ravi Mehrotra, president, Franklin Templeton India,
"At Franklin Templeton, we have always believed
that the banking channel, especially public sector banks,
have a key role in spreading the mutual fund concept
across the country, into smaller centres and
overseas, which are not covered by the existing distribution
networks. The Indian MF industry has a big responsibility
in ensuring a smooth transition of this flow of savings
from traditional savings avenues to market related products."