State-run Union Bank of IndiaBSE -5.24 % has signed a deal to sell 40% stake in its mutual fund business to Dai-ichi Life Insurance Company of Japan.
The entry of the Japanese fund with deep pockets will not only raise the prospects of Union Mutual Fund, but also accelerate the competition in an industry which is growing at 32% last fiscal and doubled from July 2014.
"The board has given approval to partner with Dai-ichi. The details are yet to be worked out," said Rajkiran Rai, managing director at Union Bank of India.
