Mumbai, September 1, 2008: SBI Funds Management Pvt. Ltd. – Investment Managers for SBI Mutual Fund, one of the largest mutual funds in the country, has formalized its tie-up with Karur Vysya Bank, a leading private sector bank in Tamilnadu. The customers of Karur Vysya Bank would now be offered mutual fund investment products from one of the top performing fund houses of the country - SBI Mutual Fund. The tie-up will be beneficial to investors in Tamilnadu, as also to tap the markets of Chennai & Coimbatore.

The SBI Mutual Fund Investor Service Centre (ISC) in Chennai is one of the biggest, with Assets Under Management (AUM) of approximately Rs. 1500 Crores and an investor base of more than 3 lakhs. It has one Investor Service Desk (ISD) each, in Trichy, Madurai and Tirunelveli. Coimbatore ISC is the second largest in Tamilnadu and it also controls the ISD of Salem. The ISC has an investor base of more than 1 lakh. The ISDs of both Chennai & Coimbatore have been strategically planned and positioned and have already created a huge impact, in terms of business generation and service support.

Sri Achal Kumar Gupta, Managing Director, SBI Mutual Fund said: “The tie up with Karur Vyasa Bank is a part of our effort to expand our reach to the semi urban and rural investors. Our quality products would now be available to the investors of Karur Vyasa Bank across the country. And with our superior fund performance and efficient customer service, we will be able to add value to the customers of the bank.

Sri P.T. Kuppuswamy, Managing Director and CEO, Karur Vysya Bank, said: “It is the aim of KVB to become a one-stop shop financial supermarket to provide the entire gamut of financial services to our customers. In this endeavor, we already provide Bancassurance and Depository services. Now we have added distribution of mutual fund products also to this bouquet. The arrangement with SBI MF is a move this direction.”

About Karur Vysya Bank:

Karur Vysya Bank is a leading commercial bank in the private sector with a branch network of 297 and an ATM network of 301 spread across 13 States and 2 Union Territories. The Bank has been recognized as the Most Efficient Small Bank by Business Today – KPMG and as the No. 1 Old Private Sector Bank by Financial Express – Ernst & Young for the past two years. The Bank has also received the Jamnalal Bajaj Fair Business Practices Award in the Financial Services category instituted by the Council for Fair Business Practices, Mumbai this year.

With a total business size of over Rs. 23000 cr., the bank plans to expand this branch network to 320 by the end of the current fiscal.

About SBI Funds Management Pvt. Ltd:

SBI Fund Management Private Limited, Investment Managers for SBI Mutual Fund, a joint venture between State Bank of India and Société Générale Asset Management – France, is amongst the leading Asset Management Companies in India with total Assets under Management (AUM) at Rs. 29151 Crores as on July, 2008. (Source: www.amfiindia.com)

The Equity schemes of SBI Mutual Fund have performed well and have consistently scored over the respective benchmark indices in the long term. SBI Mutual Fund has won 15 awards last year including "CNBC TV-18 Crisil Mutual Fund of the Year 2007" and this year it has won 3 ICRA Mutual Fund Awards 2008 and One Lipper Award for its scheme performances. SBI Mutual Fund has also won the CNBC Awaaz Consumer Award in 2006 and 2007 for being the Most Preferred Mutual Fund and also the Best Equity Fund House 2007 awarded by Outlook Money and NDTV Profit in addition to the Overall Best Fund House for the year 2007 by Outlook Money and NDTV Profit. SBI Mutual Fund is also offering debt and liquid funds.

SBI Mutual Fund has an investor base of over 54 Lakhs. With a large network of over 29 Investor Service Centers, 48 Investor Service Desks and 55 District Organizers covering over 130 points of acceptance; the fund house constantly endeavours to get closer to its growing family of investors.

Issued by Sampark Public Relations, Mumbai, on behalf of SBI MF

Naznin Prodhani / Naheed Contractor

Tel: 022-22025550