Canara Bank and Robeco join hands
March 19, India’s Canara Bank and Netherlands-based asset manager Robeco Group have singhed in a joint venture to undertake asset management business in India. The announcement was made at an event organised by the partners in New Delhi.
The new company, called ‘Canara Robeco’, existing asset management arm, Canara bank Investment Management Services Ltdd (CIMS), into an industry leader Robeco Group NV has competence in discretionary asset management services in both retail and institutional segments, operates in nine countries with Assets Under Management (AUM). Robeco Group NV will invest to the extent of 49 percent in the equity of CIMS, which is at present a 100 percent subsidiary of Canara Bank.
The total AUM of the mutual fund industry as at Jan 2007, is over Rs 3,30,000 crore. The mutual fund industry in India is undergoing a boom phase, with assets under management more than doubling between 2004 and 2006. Banks, as leading players in the financial sector, are eying this industry as one of the most potent segments.
Fast expansion in the Indian middle class, estimated at over 200 million and the demographic shifts are two major triggers for the mutual fund industry to sustain its growth momenturn in future.
MBN.Rao, CMD, Canara Bank, said that the partnership was complementary in nature to synergise the core competence of both the partners and leverge the high market potential. He said that the canara bank had client base of about 29 million, a network of over 2,550 branches across the country.
