Bank of India has agreed to purchase the remaining 49% stake each in its subsidiaries, BOI AXA Investment Managers (BAIM) and BOI AXA Trustee Services (BATS).
The Indian lender, which currently holds 51% equity shares in both BAIM and BATS, will purchase the remaining shares from AXA investment Managers Asia Holdings (AXA IM).
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Following the transaction, both entities will become Bank of India’s fully-owned subsidiaries. The deal will allow the bank to grow its asset management business.
BOI AXA Mutual Fund, which oversees over INR22bn in assets, is a joint venture between Bank of India and AXA IM that is a part of AXA Group.
It offers 14 different open-ended schemes and two close ended schemes.
The deal, subject to regulatory approvals, is expected to complete by the end of this month.
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By GlobalDataThe transaction is done at arms-length basis, Bank of India noted in a statement.
State-owned Bank of India offers a range of banking products and financial services to corporate and retail customers in India.
The government of India owned an 89.1% stake in the bank as on 30 September 2020.
Recent developments in India’s private banking space
Last month, Swiss investment bank UBS unveiled top management changes in its India operations, including the appointment of Uday Odedra as the new country head for India.
In August, InCred Asset Management, part of InCred Capital, acquired Vishuddha Capital Management to foray into the Indian asset management space.
The same month, Deutsche Bank pumped INR27bn into its India operations to support its expansion plans.
In June, French banking group BNP Paribas decided to pull the plug on its wealth management business in India citing strategic reasons.
