The Hindu Business Line : IOB ties up with Principal PNB

WHEN Indian Overseas Bank signed up with Sundaram Asset Management Company in February, it was the bank's first effort to sell mutual fund products. On Thursday, the bank announced the second — a tie-up with Principal PNB Asset Management Company.

By the month-end, there will be three more such pacts. On the anvil are distribution agreements with Cholamandalam, Tata Mutual and Franklin Templeton.

"With all mutual fund partners, we plan to sell about Rs 600 crore of mutual fund products in the current year," Mr T.S. Narayanasami, IOB's Chairman and Managing Director, told a press conference here.

Officials of IOB told Business Line that the commission, on an average, would be about two per cent. That works out to about Rs 12 crore.

Mr Narayanasami said the bank had begun to train its staff for selling mutual funds. Around 500 people have so far been trained and another 300 will get trained shortly.

"We also propose to initiate different marketing strategies to build awareness among the customers and the investing public to popularise the products," he said.

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