UBI and KBC launch joint venture in India

India's state-backed Union Bank of India (UBI) and Belgium's KBC are to launch an asset manager focusing on capital-protected and other structured funds for Indian investors.

Union Bank chairman MV Nair told local reporters that he expected to get Securities & Exchange Board of India's approval in four to five months.

The two firms are expected to invest €50m in the new firm, with UBI holding 51%, and the joint venture will target retail customers, said KBC Group's chief operating officer Danny De Raeymaeker.

The firm will target INR120bn ($2.64bn) over three years and aims to gain a market share of 3% in five years when it also hopes to break even.

Nair said the bank will train 500 people to sell mutual fund products via UBI's branch network. "We will tap our client base of 26.5 million," he said.