HSBC is in talks to purchase L&T Finance’s mutual fund arm, L&T Mutual Fund, to bolster its asset management business in India, The Economic Times reported.

The move is part of the British lender’s strategy to ramp up its wealth management business in Asia.

L&T Mutual Fund comprises 35 funds, including 12 open-ended equity schemes, 12 open-ended debt or fixed income schemes, five hybrid schemes as well as six close-ended schemes, the report said.

L&T has been looking to offload some of its non-core or sub optimal businesses to monetise its consolidated balance sheet.

Previously, private equity firm Blackstone has been in discussion to buy L & T Mutual Fund but the deal didn’t go through as it failed to get greenlight from Securities and Exchange Board of India (SEBI).

HSBC and L&T refused to comment on the news.

In April this year, Nikkie Asia reported that HSBC is considering acquisition opportunities in Asian wealth management space as its first quarter earnings beat expectations.

The bank reported profit after tax of $4.6bn, which was $2.1bn or 82% higher than the year ago quarter. Its profit before tax of $5.8bn was $2.6bn or 79% higher.

In February, HSBC revealed plans to establish itself as a wealth management leader with a focus on high-growth markets in Asia after its full-year pre-tax profit plummeted 34%.

Last year, the bank said it expects to register double-digit asset growth in its wealth business in Asia Pacific in the next three years.