Principal group ties up with Indian banks to sell mutual funds

Monday, 01 September 2003, 19:30 IST
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NEW DELHI: The Principal Financial Group, a global major in financial services, said Monday it had entered into an arrangement with two Indian public sector banks to sell mutual funds and related products in India. Principal Financial will form a new joint venture company in association with Punjab National Bank (PNB) and Vijaya Bank, said a joint press statement issued here. The Principal will own 65 percent stake of the new company Principal PNB Asset Management Company. Punjab National Bank and Vijaya Bank will hold 30 percent and five percent stake, respectively, in the joint venture. The statement said the joint venture would allow products and services of the Principal Financial Group to be distributed via the distribution channels of Punjab National Bank and Vijaya Bank. "Our venture with PNB and Vijaya Bank will allow us to broaden our reach in India and provide world-class financial expertise to a greater number of customers," said Norman Sorensen, president of Principal International Inc. The Principal Financial Group first entered the Indian market through a joint venture with the Industrial Development Bank of India (IDBI) in April 2000, focusing on selling mutual funds and related financial services. The company said it would merge its existing fund management firm in India, Principal Asset Management Company, into the joint venture. As of July 2003, Principal Asset Management Company had 157,500 customers with assets under management reaching more than $477 million. "The Principal Financial Group and its strong reputation for international asset management and accumulation made it an obvious choice for a joint venture partner," said S.S. Kohli, chairman and managing director of PNB.
Source: IANS
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