Bank of India likely to re-enter mutual fund business

Bank of India plans to re-enter into the mutual fund business in few months. The bank is in discussion with Bharti Axa Investment Managers and Pramerica AMC which were planning to sell their stakes.

Earlier in 1990 bank had entered in the MF business. Of the six schemes launched by the fund, four had been redeemed and two schemes transferred to Tauras Mutual Fund after giving exit option to investors in 2004. The bank is entering the MF space as it can leverage on its branches for distribution, which in turn will help cut cost of delivery, thus improving business efficiency.

The bank’s net profit for the quarter has declined 20.38% at Rs 491.10 crore as compared to Rs 616.78 crore for the corresponding quarter of the previous year. The bank’s total income has increased by 34.63% at Rs 7728.16 crore for the second quarter of the current fiscal from Rs 5740.05 crore for the corresponding quarter of the previous year.