Dutch asset manager Robeco Groep NV, a part of European banking giant Rabobank Groep, will buy 49% stake in Canara Bank's asset management arm to gain a foothold in the Indian mutual fund industry.
Robeco has assets under management of €139 bn worldwide and posted operating profits of €233 mn in 2005. It will pay Rs. 115 crores to Canara Bank for its stake in Canbank Investment Management Services Limited (CIMS).
Reserve Bank has given its assent to the proposed venture, and approval from market regulator SEBI and Foreign Investment Promotion Board would be sought soon.
In all, India has 32 mutual fund players with total AUMs of more than Rs. 350,000 crores. Canbank is a relatively smaller player with AUMs of about Rs. 2200 crores.
The asset management company, to be called Canara Robeco, would aim to capture 5% market share in the next five years. The JV would float five new products, especially equity-based, in the coming months.
Read The Economic Times article.
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