The Hindu Business Line : Sundaram Mutual signs distribution pact with IOB

SUNDARAM Mutual Fund has signed a new distribution agreement with Indian Overseas Bank (IOB) that will see the latter distribute the entire range of Sundaram Mutual's products through select branches.

IOB operates 1,700 branches throughout the country with over 60 per cent of these situated in the southern States.

"A bank has phenomenal reach and trust with the average retail investor. Retail is the way forward for our business. We hope this initiative will help us broaden our retail presence," said Mr T.P. Raman, Managing Director of Sundaram Mutual Fund, speaking on this occasion.

The fund will be imparting training to IOB staff in the distribution of mutual fund products. IOB, in turn will use in-house IT to provide customer service.

"Banks have to explore new means to augment their non-interest income. We would like to move towards delivering complete financial solutions to our customers. We chose Sundaram Mutual as our partner because we are confident about the quality of their products, given the backing of the reputed Sundaram Finance group," said Mr S.C. Gupta, Chairman and Managing Director of IOB, who was here for the signing of the agreement.

Mr T.T. Srinivasaraghavan, Director, Sundaram Finance, said that the Sundaram group would extend all possible support to IOB to make sure that this distribution arrangement delivered good results. Sundaram Mutual Fund's products will initially be made available through 33 key branches of the bank. The business will be scaled up over the next couple of years.

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