Bank of India is in talks with Bharti and two others to re-enter AMC business and a few join other public sector banks which have returned to asset management, finds Team Cafemutual. Read on to know more
Mumbai: Bharti Enterprises is considering selling its 25 per cent equity holding in Bharti Axa Mutual Fund, a joint venture with AXA Investment Managers which owns the remaining stake, according to media reports. But the reasons for Bharti Enterprises wanting to exit the asset management venture were not known.
Bharti Enterprises is in talks with government-owned Bank of India (BoI) which is seeking to re-enter asset management business after six years.
An unidentified official was quoted in the Economic Times newspaper on 15 October 2010 saying the bank was in talks with promoters of three fund houses for buying a majority stake in an asset management company (AMC).
Pramerica Asset Management Company is one of the other two foreign-owned AMCs in talks with BoI, according to the reports. Pramerica did not want to say anything on the likelihood of selling a stake as their global policy is not to comment on speculation.
An email query sent to Bharti AXA remained unanswered.
Bank of India wound up its mutual fund operations in 2004 by selling two of its schemes to Tauras Mutual Fund and redeeming four schemes. The public sector bank is scouting for a partner to re-enter the mutual fund business since the last two years.
Public sector banks Canara Bank and Bank of Baroda recently re-entered asset management business via joint ventures with foreign partners. Canara Bank owns 51 per cent stake in Canara Robeco Mutual Fund, while Netherlands’ Robeco owns the remaining.
Pioneer Global Asset Management of Spain acquired a 51 per cent stake in the erstwhile BOB Mutual Fund, which is now renamed as Baroda Pioneer Mutual Fund.
Banking partners are increasingly becoming popular due to their wide branch networks and legacy of customers. Their importance has further been reinforced after distributor interest to sell mutual funds has toned down post the ban on entry loads.
Public sector mutual funds had first entered asset management business, starting with SBI Mutual Fund 1987.
