BoI seeks partners for MF foray

Bank of India is hunting for an international asset management player for setting up a mutual fund joint venture in India to broadbase its earnings. This will translate into a wide range of investment products will available for BoI customers. The bank has mandated professional services company Ernst & Young to prepare a business plan for the proposed asset management company (AMC) and identify a partner, a senior bank executive said.

Players that may be tapped for the venture include the Spanish financial services group BBVA that held exploratory talks with the bank in February this year. The bank is also thinking of roping in an Indian entity, probably another bank, for the AMC business. The prospective partner will bring an expertise in asset management and the joint venture will leverage BoI’s network of nearly 3,000 branches and its client base, especially retail customers, running into millions.

 

“We want to give more investment choices to the depositors. Moreover, the bank wants to create a new stream of fee income,” the bank executive, who did not wish to be identified, said. The bank is yet to finalise the extent of shareholding that will be offered to the foreign partner. The partners are expected to be in place by December and the venture is likely to commence operations next year.