Friday, June 24, 2011

Bank of India in talks with Bharti AXA for tie-up in mutual funds

Bank of Indian and two other asset management companies are currently in talks with Bharti AXA. This time Bharti AXA is looking for someone they can enter the Mutual Fund market with. The results will be declared by the end of September this year.

Bharti AXA has recently sold their stake in the life insurance business to Reliance Industries Limited and has a lot of cash to spend. It is expected through certain reports as well as rumors in the market that Bharti will be only concentrate on retail and telecom and sector and will exit the rest.

Bank of India is very keen on entering the mutual fund market through this route. They have hired Ernst and Young as consultants on this takeover. And the bank intend to use its 3, 500 branches which will come in handy when selling the products nationwide.

This new development will help Bank of India increase its product variety. Also it will be a new source of revenue for the organization.

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