US-based Principal Financial Group has acquired 4.03 per cent of Vijaya Bank’s stake in Principal PNB Mutual Fund. The Group has also acquired five per cent stake in the trustee company.
The Group has been in a joint venture (JV) in the Principal PNB AMC with Punjab National Bank and Vijaya Bank since May 2004.
Now, with Principal’s consolidation of its holdings in the JV, Vijaya Bank is left with no stake in the AMC, while PNB’s holding in the mutual fund is reduced to 30 per cent. Principal now has 70 per cent holding in the JV. As on March 31, assets under management of Principal PNB AMC stood at Rs 4,134 crore.
Rajan Ghotgalkar, country head of Principal International (India), said, “The investment is an important step prior to execution of our recapitalisation plans to meet Sebi’s new minimum net worth norms. We are ready to step up our expansion efforts and the move validates Principal’s belief in the long term growth potential of the Indian mutual fund industry.”
As on 31 March, 2014, assets under management (AUM) of Principal PNB AMC stood at Rs 4,134 crore.