SBI Mutual Fund taps Middle East banks for product sale

15 December 2007

Mumbai: SBI Mutual Fund, the asset management company promoted by the State Bank of India, is in talks with some banks in the Middle-East for tie-ups to sell its products.

"We are in talks with some Middle-East banks to sell our products. By the end of this financial year, we would finalise at least two tie-ups and the first one is likely to finalised by next week," SBI Mutual Fund managing director and chief executive Syed Shahabuddin said.

He, however, refused to divulge the names of the banks.

"Our offshore fund is mainly dollar and euro denominated, which will have a lot of appeal to foreigners because the investments are made in India and the returns commensurate with the Indian stock market," he added.

Shahabuddin said the company's assets under management would touch Rs40,000 crore from Rs28,000 crore by end of this year.

SBI MF, he said, is also targeting Tier II and Tier III cities to fuel growth. "Our business from these places are just about 30 per cent and 70 per cent mainly comes from the urban areas. We would like it to be at least 50:50," Shahabuddin said.