UBI to partner with KBC Group for MF business

MUMBAI: Public sector lender, Union Bank of India (UBI), has chosen Belgium-based KBC group to partner it in its mutual funds business.
    
UBI will appoint a consultant for its asset management business by January 7, for which it is currently in talks with three players -- Ernst & Young, DSP Merrill Lynch and KPMG, Union Bank's Chairman & Managing Director, M V Nair said.
    
"After assessing both the companies (BBVA of Spain & KBC), we have decided to partner with KBC for our mutual fund business. The partner will be officially announced shortly," Nair said.
    
The state-owned bank will have a 51-per cent stake in the joint venture, Nair said, adding that the venture is expected to get functional in the next 6-7 months.
    
Last week, the public sector bank had told PTI that it has zeroed in on two companies, BBVA of Spain and KBC, which were put through a rigorous screening process before the final selection.
    
KBC group was formed in 2005 following the merger of KBC Bank and Insurance Holding Company with its parent firm, Almanij.
    
The company is the third largest bancassurer in Belgium and has nearly 50,000 employees catering to nearly 12 million customers across the world.
    
Nair said the consultant will help the bank to structure its asset management business and also in shaping the type of products suitable for the Indian market.