India's public sector banks (PSBs) have continued to lag behind their private peers when it comes to selling mutual funds (MFs) to investors. Despite having a huge branch network across the country — more than half of which are in the rural and semi-urban regions — state lenders appear not excited to do a serious MF distribution business.
It is worth to note that the MF sector has been attracting a lot of investments from the country's hinterland. The inflows are at historic highs and so is the burgeoning investors' base. However, this is not being adequately captured as a business opportunity by the behemoths of the banking sector.
