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Bank of India to acquire 49% stake in subsidiaries

Capital Market 

Bank of India (BOI) rose 2.85% to Rs 48.75 after the state-owned bank said it will acquire 49% stake each in BOI AXA Investment Managers (BAIM) and BOI AXA Trustee Services (BATS) from AXA investment Managers Asia Holdings (AXA IM).

Following the transaction, both the entities, BAIM and BATS, will become BOI's fully owned subsidiaries. The bank currently holds 51% equity shares in BAIM and BATS.

The transaction is proposed to be completed by end of December 2020 or such other extended date mutually agreed between Bank of India and AXA IM.

BOI AXA Mutual Fund is a joint venture between Bank of India and AXA IM, a part of AXA Group. As of 30 September 2020, the mutual fund has Rs 2,251 crore worth of asset under management. It offers 14 different open ended schemes and 2 close ended schemes.

BAIM had a total turnover of Rs 25.45 crore in the last fiscal year. While, BATS had a total turnover of Rs 0.12 crore.

BOI said the strategic acquisition of 49% stake of AXA IM in BAIM and BATS shall enable it to have complete control of BAIM and BATS and grow the asset management business by leveraging on the BOI brand and distribution strength.

BOI's net profit jumped 97.4% to Rs 525.78 crore on a 3.5% increase in total income to Rs 12,408.66 crore in Q2 September 2020 over Q2 September 2019.

BOI provides a wide range of banking products and financial services to corporate and retail customers. The Government of India holds 89.10% stake in BOI as on 30 September 2020.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Thu, December 03 2020. 15:45 IST