Bharti Enterprises exits
from the mutual fund business as Bank of India makes a re-entry.
State-run Bank of India
(BOI) has re-entered the mutual fund industry by buying 51% stake in Bharti AXA
Investment Managers for an undisclosed sum.
BOI has acquired 25% stake from Bharti Enterprises
(which will exit the fund house) and 26% from AXA Investment Managers (Asia). The remaining 49% stake
will be held by AXA Group, according to our sources.
The fund house will be
renamed ‘BOI AXA Investment Managers’.
PSU banks have been able to
leverage their extensive branch network for distributing mutual funds. BOI will
also look at utilising its strong all-India presence to boost its MF business.