NEW YORK, Oct. 6 /PRNewswire-FirstCall/ -- Millennium India Acquisition
Company, Inc. ("Millennium") (Nasdaq: SMCG), a closed-end investment fund
focused on emerging market leaders within the fast-growing Indian economy,
today announced that its principal investment - SMC Group - has signed a
Memorandum of Understanding with Punjab National Bank (PNB), India's second
largest public-sector commercial bank, providing SMC the opportunity to offer
online trading and related investment brokerage services to PNB's 35 million
customers.
Listed on the Mumbai Stock Exchange, PNB has the second largest branch
network in India with 4,540 offices in over 760 cities. With a 112-year
tradition of prudent banking, PNB offers a wide variety of banking services:
personal and corporate banking, including industrial, agricultural, and export
finance, and international banking.
S.C. Aggarwal, Chairman and managing director of SMC said, "I am pleased
to announce the alliance between SMC Group and PNB, one of the largest and
most prestigious commercial banks in India serving over 35 million customers.
Through this alliance, all PNB customers will have access to SMC's
state-of-the-art online trading platform, and will be able to invest in a wide
range of financial products including equities, commodities, mutual funds and
IPOs. The first phase of this launch will cover six branches in Delhi; after
the pilot, the alliance will be implemented on a pan-India basis."
F. Jacob Cherian, Chairman and CEO of Millennium added, "Online trading
represents a tremendous growth opportunity because India's young,
technology-savvy population is just beginning to appreciate the benefits of
24/7 market access. Add to that dynamic SMC's state-of-the-art online trading
technology and PNB's large untapped client base, this presents a significant
growth opportunity for SMC, and ultimately Millennium."
Suhel Kanuga, President and CFO of Millennium added, "One of the notable
aspects of the financial sector in India is the infancy of the credit,
mortgage and derivatives businesses. As such, India has been one of the few
major growth economies to escape the large issues facing financial companies
operating in developed countries. At the same time, while clearly affected by
the negative sentiment in markets across the world, the financial sector in
India still remains fundamentally strong: (1) over 80% of India's GDP growth
driven by domestic consumption - lesser reliance on developed nations, (2)
less than 3% of India's 1.2 billion people in the markets today, and (3)
financial products and services such as mutual funds, commodities, insurance,
online trading and wealth management, that we take for granted in developed
countries, have only scratched the surface in India."
About Punjab National Bank
Punjab National Bank (PNB) is one of India's largest nationalized banks,
with some 4,500 locations. The financial institution offers services in
personal and corporate banking, including industrial, agricultural, and export
finance, as well as international banking. Its personal lending services
include loans for housing, autos, and education. PNB's diverse client list
includes Indian conglomerates, small and mid-sized businesses, non-resident
Indians, and multinational companies. The bank was established in 1895. More
information regarding PNB can be found at www.pnbindia.com.
About SMC Group
Based in New Delhi, SMC Group is a full service financial services firm.
Its products and services include institutional and retail brokerage, equity
and commodity research, equity, commodity and derivative trading, on-line
trading services, merchant banking, investment banking, custodial services,
clearing services, and distribution of mutual funds, IPOs and insurance
products. For the year ended March 31, 2008, it was one of the most active
trading firms in India, averaging over 250,000 trades per day and handled over
$250 billion in customer transactions. SMC Group continues to grow, and has
one of the largest retail investor networks in India today, serving the needs
of a total of 525,000 investors presently, having added 275,000 customers
since March 31, 2007. The retail distribution footprint in India has expanded
as well, taking the total to approximately 1,338 locations, as of June 30,
2008. Currently, SMC Group has approximately 1,800 employees and a rapidly
expanding retail distribution network of more than 7,500 independent financial
advisors, in over 360 cities across India. More information regarding the SMC
Group can be found at www.smcindiaonline.com.
About Millennium India Acquisition Company Inc.
Millennium India Acquisition Company Inc. (Nasdaq: SMCG) is a closed-end
investment fund whose principal asset is a 14.4% equity stake in SMC Group,
one of the largest and fastest growing retail financial services companies in
India. Through its innovative structure, Millennium offers U.S. investors the
only means for participating in India's fastest-growing financial services
sector, which is difficult to access for foreign investors currently under
Indian law. Led by a highly-experienced management team with deep roots in
India, Millennium applies a rigorous investment selection focused on
identifying emerging market leaders in India's high-growth industries,
specifically those sectors catering to the nation's rising middle-class
including financial services, retail, healthcare, and technology. More
information on Millennium India Acquisition Company Inc. can be found at
milcapital.com.
Cautionary Statement Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning
of the Federal securities laws about MIAC, SMC Group and the Punjab National
Bank. Statements in this press release that are not statements of historical
or current fact constitute forward-looking statements. Such forward-looking
statements involve known and unknown risks, uncertainties, and other unknown
factors that could cause the actual results of MIAC to be materially different
from the historical results or from any future results expressed or implied by
such forward-looking statements. In addition to statements which explicitly
describe such risks and uncertainties, readers are urged to consider
statements labeled with the terms "believes", "belief," "expects," "intends,"
"anticipates," "plans," or similar terms to be uncertain and forward-looking.
The forward-looking statements contained herein are also subject generally to
other risks and uncertainties that are described from time to time in MIAC's
filings with the Securities and Exchange Commission. The information set forth
herein should be read in light of such risks. Additionally, any information
about SMC Group is provided by SMC Group and any information about Punjab
National Bank is provided by Punjab National Bank. Statements included in this
press release are based upon information known to MIAC as of the date of this
press release, and MIAC assumes no obligation to update or alter our
forward-looking statements made in this press release, whether as a result of
new information, future events or otherwise, except as otherwise required by
applicable federal securities laws.
SOURCE Millennium India Acquisition Company, Inc.