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GRAPHIC: Banks are one of the biggest MF distributors in India

Banks due to their huge network of branches are preferred as MF distributors

Chandan Kishore Kant 

mutual funds
Illustration: Ajay Mohanty

Banks, because of their huge network of branches, are one of the biggest mutual fund (MF) in the country. While most that distribute MFs are free to sell any schemes offered by the country’s more than 40 fund houses, they have shown a preference towards their own MF subsidiary. Canara Bank, for instance, earned nearly Rs 17 crore in MF commissions in 2016-17; the entire amount came from their arm, Canara MF. Similarly, State Bank of India (SBI) earned Rs 175.46 crore in MF commission, 98 per cent of that by selling MF schemes. The share of commission from their MF arms was high for other such as Bank of Baroda, ICICI Bank, and Industry experts have raised concerns about the dominance of large in pushing their own products. They say the products of the other fund houses, too, should be advised to investors to create better But, there has not been much impact on With Sebi’s recent consultation paper on segregation of and advisors, it will be interesting to see how the situation pans out, going forward.  

Banks biggest MF distributors of India

First Published: Fri, June 30 2017. 00:35 IST