Mutual funds foray at 'appropriate time' : Corporation Bank
Public sector lender, Corporation Bank, has ruled out entering the insurance business in the medium-term and would decide about its mutual funds foray at "the appropriate time", a top bank official said.
By PTI |
MUMBAI: Public sector lender, Corporation Bank, has ruled out entering the insurance business in the medium-term and would decide about its mutual funds foray at "the appropriate time", a top bank official said.
"We have no plans to enter insurance for now," the bank's Chairman and Managing Director, B Sambamurthy, told PTI here.
On mutual funds foray, Sambamurthy said that though the business was on the bank's radar, there was nothing on the immediate horizon.
"A few overseas players have approached us, but we will take a decision on entering the business only after a few months," he said.
One of the parties understood to have approached Corporation Bank for a mutual funds tie-up is Spanish financial services major, BBVA.
The bank already has a tie-up with insurance giant, Life Insurance Corporation (LIC), which holds around a 27 per cent stake in the bank. The bank markets the latter's products.
"We will continue this tie-up. Presently, we don't see any need to enter the insurance business on our own," Sambamurthy said.
If the bank decides to enter the asset management business, then it would do so only after a thorough planning. "We would like to have the right partner," he said.
The insurance and mutual funds businesses in the country hold immense potential and are growing rapidly. Several new players have entered the market, flaring up competition.
A host of public and private sector banks are already active in the business while a few are in the process of tying-up partners.
Corporation Bank would be ideally placed to distribute mutual funds products since it already has in place a pan-India branch network and is especially strong in the south.
It plans to add another 100 branches this year of which around 60 per cent would be in the north and western regions of the country, thereby beefing up its branch network in these regions as well.
Presently, it has around 980 branches pan-India.
"We have no plans to enter insurance for now," the bank's Chairman and Managing Director, B Sambamurthy, told PTI here.
On mutual funds foray, Sambamurthy said that though the business was on the bank's radar, there was nothing on the immediate horizon.
"A few overseas players have approached us, but we will take a decision on entering the business only after a few months," he said.
One of the parties understood to have approached Corporation Bank for a mutual funds tie-up is Spanish financial services major, BBVA.
The bank already has a tie-up with insurance giant, Life Insurance Corporation (LIC), which holds around a 27 per cent stake in the bank. The bank markets the latter's products.
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"We will continue this tie-up. Presently, we don't see any need to enter the insurance business on our own," Sambamurthy said.
If the bank decides to enter the asset management business, then it would do so only after a thorough planning. "We would like to have the right partner," he said.
The insurance and mutual funds businesses in the country hold immense potential and are growing rapidly. Several new players have entered the market, flaring up competition.
A host of public and private sector banks are already active in the business while a few are in the process of tying-up partners.
ADVERTISEMENT
Corporation Bank would be ideally placed to distribute mutual funds products since it already has in place a pan-India branch network and is especially strong in the south.
It plans to add another 100 branches this year of which around 60 per cent would be in the north and western regions of the country, thereby beefing up its branch network in these regions as well.
ADVERTISEMENT
Presently, it has around 980 branches pan-India.
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