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UTI-I holding company plan shelved
Anita Bhoir & Anindita Dey in Mumbai |
December 22, 2004 11:45 IST
UTI Bank is believed to have mooted to its parent UTI-I a proposal of bringing in all UTI outfits under the umbrella of a holding company. The proposal, however, did not find favour with the finance ministry.A source in the group said the original proposal did not envisage any budgetary support from the government but when it was placed before the ministry, it did ask for a budgetary support and did not find the government nod.
The objective was to leverage the UTI brand by unifying all entities within the UTI group under the UTI brand and transferring of UTI-I's assets to a holding company. UTI has an asset management company, a securities unit and a bank under its fold.
"The bank's objective behind floating a holding company was to give a consistent corporate identity to all the UTI subsidiaries," said a source close to the development.
"The proposal would have facilitated self-liquidation of UTI-I in due course by ensuring that the strategic investments of UTI-I be transferred to the holding company," added the source.
The self-liquidation of UTI-I would take place once all the schemes under it close down or are wound up.
UTI-I oversees the US-64 and other assured return schemes, which have been getting redeemed from time to time according to their maturity dates.