Bank of India to enter MF sector, in talks with Bharti AXA
Monday, 20 June 2011, 21:32 IST
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Bangalore: Public sector lender Bank of India (BoI) said it was in talks with Bharti AXA and two other asset management companies for an entry into the mutual funds business and hopes to seal the deal before end September. "We are in talks with Bharti AXA and two other companies. We will announce it before end of the next quarter," Chairman and Managing Director Alok Misra told reporters. Bharti, which exited life insurance business earlier this month by selling off its stake in Bharti AXA Life Insurance to Reliance Industries, is also tipped to be looking at options of exiting other non-core businesses, to concentrate on telecom and retail. A senior BoI official said it made sense to acquire an operational business than start something which will take two years to build up. The Mumbai-headquartered BoI has appointed consultancy firm Ernst and Young for advising it on the takeover of an existing player, the official added. BoI hopes to firm up its non interest income through an entry into the MF business. It will use its network of over 3,500 branches nationally to distribute its products.
Source: PTI