Bank of India is looking to increase holdings in its asset management unit BOI AXA Mutual Funds and is in talks with partner AXA Investment Managers the remaining stake in the AMC, sources told CNBC-TV18.
BOI AXA MF is a joint venture between Bank of India and AXA Investment Managers. BoI owns about 51 percent stake, while AXA holds 49%.
The discussions are at a very nascent stage currently, they said. The consultation with regulators and the foreign partner is expected to start by the end of March 2020 and the deal is likely to close in the first half of the next financial year, sources added.
That is a very important development for a public sector bank as it is contrary to what a lot of PSU banks are doing—divestment in non-core assets.
Moreover, the MF unit has been hit severely in the last one and a half year due to its exposure to the commercial papers of CCD and had also seen some redemption in the aftermath of IL&FS fiasco. The assets under management (AUM) is about Rs 3,500 crore.