India’s Axis Bank has received approval from the Pension Fund Regulatory and Development Authority (PFRDA) to operate as a pension fund manager.

In the first 45 days of the operation, the bank is said to handle more than INR1bn ($12m) in assets under management (AUM) within the retirement sector.

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Axis Bank has established a step-down unit Axis Pension Fund Management (Axis PFM) via its subsidiary Axis Asset Management Company as part of its move to enter the retirement industry.

According to Axis Bank chief executive and managing director Amitabh Chaudhry, Axis PFM will tap the bank’s investment management and distribution capabilities to offer retirement solutions to the clients.

Axis PFM will involve in the management of pension funds of investors spanning across different fields including corporate and government sectors, in compliance with investment guidelines issued by PFRDA.

It will also help its individual clients with the management of their retirement wealth under the country’s New Pension Scheme (NPS) for receiving an income on a regular basis post-retirement.

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In addition, Axis PFM will help its investors in earning risk-adjusted returns in the long terms.

Currently, several banks, including State Bank of India, LIC, UTI, HDFC, ICICI Prudential, Kotak Mahindra Group and Aditya Birla Group, are supporting entities in pension fund management sector across India.

For the quarter ended 30 September 2022, Axis Bank’s operating profit increased 43% year-on-year (YoY) and 19% quarter on quarter (QoQ) to INR78.02bn.