State Bank Of India

State Bank of India (SBI) has reportedly initiated a proposal to acquire UTI Mutual Fund and merge it with its asset management arm SBI Mutual Fund. SBI had made the proposal to the department of financial services, which in turn has forwarded it to the department of economic affairs for consideration.

The merger plan, if it does pass muster, will create India’s biggest mutual fund by assets while giving the country’s biggest bank a majority stake in such an entity as well as a dominant role in the mutual fund business.