IOB to distribute Franklin Templeton mutual fund products
24 August 2005
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."