Peerless in pact with United Bank of India for mutual fund products

Kolkata, Sep 16 (Calcutta Tube) Peerless Funds Management Company Ltd (PFMCL) Thursday joined hands with United Bank of India (UBI) to distribute its mutual fund products through select branches of the bank.

‘PFMCL has entered into a strategic alliance with UBI for promoting its entire bouquet of products through the bank’s network of over 1,500 branches across 28 states,’ said S.K. Roy, managing director of Peerless General Finance and Investment Company (PGFIC).

PFMCL is a wholly-owned subsidiary of the city-based PGFIC.

PFMCL started with mutual fund business in February 2010. At present, it has four funds – three institutional funds and one retail fund.

Akshay Gupta, chief executive officer, Peerless Mutual Fund, said: ‘We have applied to the SEBI (Securities and Exchange Board of India) for approval of two more funds last month. We expect to get the approval in the coming two months.’

At the annual general meeting of PGFIC Thursday, Dipankar Basu, chairman, said the company is gradually phasing out its six decades old deposit taking business in compliance with regulatory directions.

‘In the current year, we have stopped accepting fresh deposits and are accepting renewal deposits only, which too will be stopped from April 1, 2011 although the company will naturally continue to honour all maturity payments as these fall due,’ Basu said.

Basu said the company is looking at newer business opportunities, ‘not only in the financial services segments, but in the non-financial space’ also.

The company has qualified as an enrolling agency by the Unique Identification Authority of India (UIDAI) for undertaking demographic and biometric data collection for UID enrolment in 11 specified states.

Peerless Group is also present in the hospitality sector. Roy said the company plans to expand its hotel business.

‘The plan for setting up another hotel on the land adjacent to The Peerless Inn, Kolkata, is on the anvil. To meet the increasing demand of the tourists and business travellers, the company is exploring possibilities for setting up 4-star hotels in Navi Mumbai, Gurgaon and Bhubaneswar,’ he said.

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