United Bank of India is ready to tie up with Kotak Mahindra to sell mutual funds. According to my estimates, United Bank of India at this moment of time has tie-ups with five asset management companies, including UTI, HDFC, Franklin Templeton, Reliance and ICICI Prudential for selling mutual fund schemes. Apart from mutual funds, United Bank of India is also selling insurance policies as part of its drive to boost non-interest income.
At present, United Bank of India’s business from mutual fund and insurance schemes stood at Rs 14.5 crore, which is about 5% of total non-interest income. According to sources, United Bank of India is eyeing to double up its business to Rs 150,000 crore by 2011. It has also roped in Indian Institute of Management, Calcutta to devise a mid-term strategic plan.
About United Bank of India:
Highlights of performance for the 9 months period ended 31st December 2007
• Net Profit jumps by 32.5% y-o-y
• Total Business grows y-o-y by 21.0 %.
• Deposits grow y-o-y by 23.0 %.
• Advances register a growth of 17.7 % y-o-y.
• Capital Adequacy Ratio improved to 13.63 %.
• Non Interest Income grows by 45.7% y-o-y.