Tuesday, July 19, 2005

LIC & SBI, front runners for UTI

The Government of India is no mood to sell UTI Mutual Fund to any private player and has insisted that one of the existing sponsors buy it by this fiscal. Finance Ministry has appointed SBI Capital as the merchant banker to carry out the valuation of the country's largest fund house that manages assets worth Rs 22,000 crore. Unit Trust of India AMC may be sold to the highest bidder among the four existing sponsors -- State Bank of India, Life Insurance Corporation, Punjab National Bank and Bank of Baroda out of which Life Insurance Corporation and State Bank of India appears to be the front runners . Top officials of these leading brands in their respective segments have given a presentation to the Ministry of Finance last week on the future course of action for the country's largest fund house including buying out the stakes of other players. Unit Trust of India AMC has been one of the fastest growing funds in the country and targets Rs 26,000 crore in AUM by the end of this fiscal, a growth of over 25 per cent. The fund is now geared up to expand its branch network to 15 more cities this fiscal over and above the 56 cities they are already into. Unit Trust of India AMC plans to expand its branch network to 100 cities in the next two years.