BoB may part majority stake

Bank of Baroda (BoB) is open to sharing a majority stake in its asset management company (AMC) with an undisclosed foreign partner for starting a joint venture (JV) in its AMC.

Anil Khandelwal, chairman and managing director of BoB, told Business Standard, "We are open to the option of giving away a majority stake to the foreign partner in our proposed JV in AMC. If we hold a majority stake then it will obviously be a 51 per cent stake and the same amount will be with our partner if we decide to give then a majority stake."

The bank had been scouting for partners for its asset management company for some time.

"The memorandum of understanding with a foreign partner will be signed by December 2006," said Khandelwal.

He also confirmed that talks for the JV are on a positive footing and will be launched by end of March 2007.

BoB AMC was incorporated in 1992 and is a wholly-owned subsidiary of BoB. The bank is also scouting for partners for its wealth management and stock broking services.